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Wednesday, July 19, 2017
Global central banks should adjust monetary policy benchmark based on inflation
ANBOUND

The major global central banks are worried about the delay in inflation. The world today is at a new stage; factors like global division of labor caused by globalization, urbanization caused by excess liquidity, cheaper funds, global overproduction caused by excess liquidity worldwide, as well as artificial intelligence and automation applications will result in difficulty even if the increase in money supply, and difficult to stimulate the rise in inflation. Low inflation may become a long-term phenomenon in the future. Faced with such a new era, the global central banks that have been using inflation index as a monetary policy adjustment target for many years may no longer be effective. Anbound believes that the adjustment of monetary policy benchmarks should be placed on the central banks' schedule.

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