In last 5 years, Central bankers across developed countries wanted higher inflation to raise rates so that they can cushion when next time crisis hit. But, now when inflation is so higher, most of developed countries central bankers claiming as transitory!
#centralbank #bonds
#centralbank #bonds
Do central banks having any fiduciary responsibility towards citizen of that countries in some other citizens as well or is it towards the people or govt who hired them in first place!
Most of the central banks fail to anticipate any events ahead of the market. At least some market participants are savvy enough to get the clear picture ahead of the events.
The counter argument is that it is not central banks responsibility to predict events but to prevent catastrophic impact in the general on economy or any sector!
If that is the case, central bankers should react faster to higher inflation but it has slow response as they feared that higher fiscal deficit will balloon further and let treasury keep raising money at lower cost.
Lot of progress need to made not only at monetary policy front but also wrt making central banks independent.
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