Monetary policy is not doing enough
Inflation expectations in wholesale collapse
|Stephen Kirchner||Mar 11|
I go into bat for the relative effectiveness of monetary policy in this Guardian economists’ panel on responses to the COVID-19 pandemic.
Note the collapse is US inflation expectations, indicating that the Fed is not doing nearly enough to offset the shock to nominal demand.
RBA needs to move inter-meeting on 19 or 20 March following the Fed.