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Research study states strategy eventually did well post-Covid, but harmed reserve banks’ trustworthiness
Central banks can be hard pressed to duplicate their delayed yet considerable response to the 2021– 23 rising cost of living surge, new study says.
In a column on July 28, Kristin Forbes of the Massachusetts Institute of Innovation and Jongrim Ha and Ayhan Kose of the Globe Financial institution claim the “substantially greater” costs seen around the globe given that 2023 have made it more difficult for central banks to make use of the exact same strategies once more.
The writers state reserve banks “may require to rebuild and strengthen credibility”
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