Should Central Banks Give Up On Inflation Targeting?

“Has inflation has its day?” That’s the question asked in a research note from the Rates and Currencies Research team at Bank of America Merrill Lynch. Central banks around the world are struggling to meet inflation targets despite their aggressive monetary easing. Policymakers are blaming inflation shocks for their mistakes, but for how much longer can central bankers continue to make such claims? US Housing: The Best Disinflation Trade? Almost all of the world’s central banks, both in developed and emerging markets have been missing inflation targets, which brings into question the effectiveness of using such objectives in the first…