The Political and Technical Aspects of Controlling Inflation

The task of central banks is to keep prices stable. The current resurgence of inflation could thus be regarded as nothing more than central banks engaging in their normal job. However, this time is different in that the current bout of inflation arrives after a long period of too low inflation and, moreover, low inflation which persisted despite years of very loose monetary policies, a period which one contribution to this issue’s Forum characterises as the “Great Monetary Expansion”.