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worried about 2% inflation target. in 2020, the central bank implement said new monetary framework, applicable average inflation target. the idea was to make up shortfalls by temporarily allowing inflation to exceed 2% while averaging 2% in the long run. no specific timeframe is given. this likability increases uncertainty about price stability. until recently the fed s mantra setting its policy rate was lower for longer. forward guidance is often misguided. the macro models were unreliable. with monetary policymaking. the third side as transitory, slow to increase following rates. the consensus has changed and the fed made it clear rates will rise until inflation falls to a more normal level even if the us faces inflation. the underlying problem with the current monetary regime is too much for policymakers, the limits of monetary policy is forgotten. there is no clear rule for guiding policy. carl bruder, in the conduct of monetary policy. given the complexity of real ....
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