why it is the biggest test yet for central bank independence
- Written by Anton Muscatelli, Principal and Vice Chancellor, University of Glasgow
Central banks are being tested by the recent resurgence in inflation, with the US recently reporting an annual rate of inflation of 6.8%, the highest in nearly 40 years. The question they are all asking is whether this inflation is temporary (“transitory”) or persistent.
If it is only transitory, it would be counterproductive to deal...