🚨 🚨 El-Erian: The “last mile” on this inflation journey is the trickiest, made more so by the lack of consensus among economists on the stars that normally guide monetary policy. They disagree on the level of the neutral interest rate, or R-star — the level at which monetary policy neither accommodative nor restrictive. A growing number of economists are willing to question whether 2 per cent remains the right inflation target in a world going through so many structural changes. And then there is the Fed’s “monetary policy framework” which, while only three years old, requires an urgent update
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