Politically independent Central Banks are crucial to the good running of the economy.

May 03, 2023
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Politically independent Central Banks are crucial to the good running of the economy. - El-Erian

And without accountability, you don't get politically independent Central Banks.

Transitory inflation call was false. It means not just short -term, but also that people don't change their behavior.

Communications were a mistake. The inconsistent message during press conferences caused like 3x volatility in markets.

Why did it get inflation so wrong? and why did it stall so late to do something about inflation (the EU and others did that), and why did they not tell the public why they didn't get that right.

We give them enormous power. They're the only public agency that doesn't have to go to Congress to make a decision.They can inject $7t if they want. Or if they want to cut interest rates. It's critical they have that autonomy though, El-Erian said, for their acting.
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<div>Politically independent Central Banks are crucial to the good running of the economy. - El-Erian</div><div><br></div><div>And without accountability, you don't get politically independent Central Banks. <br></div><div><br></div><div>Transitory inflation call was false. It means not just short -term, but also that people don't change their behavior.</div><div><br>Communications were a mistake. The inconsistent message during press conferences caused like 3x volatility in markets. <br></div><div><br></div><div>Why did it get inflation so wrong? and why did it stall so late to do something about inflation (the EU and others did that), and why did they not tell the public why they didn't get that right. <br></div><div><br></div><div>We give them enormous power. They're the only public agency that doesn't have to go to Congress to make a decision.They can inject $7t if they want. Or if they want to cut interest rates. It's critical they have that autonomy though, El-Erian said, for their acting. <br></div> <br>
Politically independent Central Banks are crucial to the good running of the economy. - El-Erian

And without accountability, you don't get politically independent Central Banks.

Transitory inflation call was false. It means not just short -term, but also that people don't change their behavior.

Communications were a mistake. The inconsistent message during press conferences caused like 3x volatility in markets.

Why did it get inflation so wrong? and why did it stall so late to do something about inflation (the EU and others did that), and why did they not tell the public why they didn't get that right.

We give them enormous power. They're the only public agency that doesn't have to go to Congress to make a decision.They can inject $7t if they want. Or if they want to cut interest rates. It's critical they have that autonomy though, El-Erian said, for their acting.

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