- Inflation is money, therefore a true central bank should be able to judge whether or not there is too much. If there is, inflation’s going to be coming unless some intervention in the real money system.
- Instead, policymakers attempt to reverse-engineer their way into the inflation ballpark, which necessitates extrapolating out into the future even the smallest blip.
- At the same time each central bank is looking ahead to inflationary potential in their own backyards and “tightening” policies because of their assumptions, they seem to be doing so into yet another potential globally synchronized slowdown or worse.
For further details see:
Are Central Bankers About To Spike The Ball At The 30-Yard Line (Again)?