It is rare for central bankers to be blunt.

Huw Pill's "people need to accept" they're poorer is more than a slip of the tongue.

What central bankers are telling you, is they will not be able to do their job. Balancing price stability vs financial stability in a post #QEinfinity world is a difficult act.

“There is no trade off between price stability and financial stability", said ECB President @Lagarde in March.

That is true, until something breaks.

Most things in life are transitory.

Duration, however, is what matters.

Five years at 3%+ inflation can eat up a sixth of your capital, in real terms. We have good arguments to say that inflation may or may not be transitory.

Supply bottlenecks might be temporary and deflationary dynamics may persist due to technology and demographics.

However, fiscal stimulus might continue and de-globalisation might increase costs.