Does Inflation Targeting Make the Poor Poorer?

Central banks' shooting for a specific rate of inflation may seem like gospel now, but it wasn’t always that way. Mario Seccareccia, professor of economics at the University of Ottawa, traces the history of the policy from New Zealand to the U.S.

[@waynemcmillan5970]

The obsession with inflation over unemployment has been a major mistake.

[@dweller6065]

In Australia's case, the RBA's monitoring of wage growth that was consistent with its inflation target explicitly took into account productivity gains. Again this highlights the importance of good policy architecture and how small differences can lead to quite different outcomes. The lesson is - be careful not to project policy failures - particularly of the US - onto the experience of other countries.

[@consciouscrypto3090]

This interviewer needed to ask more questions to guide the "conversation." This monologue spent too much time circling the primary point being made.

[@michelleloving525]

This aged well

[@dweller6065]

Interesting talk. When critiquing inflation targeting be aware that different countries have adopted quite different system features. Some like NZ in the 1990s under Gov Brash had a rigid 2% target with little tolerance for over shooting before the cb came in to raise rates. The stricter the target, the cb has to be more active. The Australians looked at the NZ and Canada egs in the early 90s and adopted 2 significant changes (a) a target band as opposed to a single rate (b) that target band was set higher (c) the time horizon was extended for the target to average between 2 to 3% over the course of the business cycle. These changes served Australia well, in fact NZ under Curran changed the NZ system to reflect these features.

[@Orf]

“In a sense so to speak if you wish to call it”

[@breadman7733]

This has sprung back in relevance

[@tonywalters7298]

Especially with the push to raise rates to lower wage growth (never mind the intense acculumlation of wealth of a few billionaires, it is the average joe and jane's fault/s)

[@klam77]

Today's "high" interest rates hoopla causing economy to "struggle": real growth =2%, + inflation =2% (total 4% nominal); 10yr Treasury 3%.

[@GenghisVern]

voodoo economics. seems to have been very popular

[@brucewayne2081]

a lecture on distribution distortions by the central banks and not a word on serial asset bubble blowing by them.
by looking only at a core inflation that is essentially imported electronics and computers, the central banks have killed the working classes' purchasing power and transferred it to asset owners.

[@art4freak795]

Interesting

[@Pablo123456x]

That leather jacket has the animal spirits inside of it.

[@JosephBarbuto]

Inflation targeting will lead to deflation. The Kondratiev cycle is alive and well

[@emmanuelameyaw9735]

Yeah...it has caused the current deflation around the world😂

[@JosephBarbuto]

@@emmanuelameyaw9735 Lockdowns have nothing to do with the current business /inflation Wave? Your ignorance and short-term thinking are obvious.

[@emmanuelameyaw9735]

What's the point of the talk? Inflation targeting central bank target both and inflation and output gap...and hence unemployment which the professor admit...so whats the point here.

[@tobi9466]

Output gap has a lot of flaws. Ecb has admitted that for example

[@pramodsavage]

jimmy page with a mustache..

[@bladeswhite]

He is talking complete non-sense

[@emmanuelameyaw9735]

😂😂...that's why he is a professor, not central bank governor.

[@tdouble4387]

You don't have a counter argument, all you have is "he is talking nonsense"?

[@tdouble4387]

@@emmanuelameyaw9735 The same governors that keep pushing the world into financial ruin. It was the same bankers that led us to 2008.