Have central banks moved to break the monetary policy vicious cycle?

More important than inflation forecasting is the policy regime itself

Masaaki Shirakawa

December 10, 2021 05:00 JST

Traders work on the floor of the New York Stock Exchange on Nov. 29: in the eyes of market participants, monetary policy asymmetry has been a notable feature of the past three decades. © Getty Images

Masaaki Shirakawa is a former governor of the Bank of Japan.

Inflation is the hot issue in the global debate over monetary policy. Central banks in advanced economies initially took the recent inflation spike as "transitory" and emphasized their patience with continuing extremely accommodative policy settings.