Skip to main content

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated Cookie policy, Privacy policy and Terms & Conditions

monetary_policy_bp_KAREN_BLEIER_AFP_Getty_Images KAREN BLEIER/AFP/Getty Images

Monetary Myopia

With the world economy in a sustained but fragile upswing, central bankers have been walking a tightrope to maintain growth alongside price stability, and to prepare for the next inevitable downturn. Before it comes, it is worth asking whether the monetary-policy lessons of recent years have been properly absorbed.

In this Big PictureJ. Bradford DeLong laments that the US Federal Reserve remains beholden to long-held assumptions that will tie its hands when the next crisis comes. And Stephen J. Roach worries that policymakers may be overestimating the effectiveness and underestimating the risks of newer, unconventional policies such as quantitative easing.

Meanwhile, Stefan Gerlach shares similar concerns about the European Central Bank, arguing that its price-stability framework has painted its into a corner. And Linda Yueh suspects that the Bank of England may be committing a similar mistake with its singular focus on inflation. More broadly, Paola Subacchi warns that leadership changes across all of the major central banks seem to augur more of the same, rather than sorely needed new ideas.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.


Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.;

Edit Newsletter Preferences

Set up Notification

To receive email updates regarding this {entity_type}, please enter your email below.

If you are not already registered, this will create a PS account for you. You should receive an activation email shortly.