Surveillance: Equity Caution with Wei Li
Bloomberg Surveillance
00:00
Are Central Banks Really Using Backward-Looking Information to Juice When They've Done Enough?
The central banks are using backward-looking information to judge when they've done enough with their forward-acting tools of monetary policy. They're not, I don't think, looking too much at inflation. The headline's obviously important but it's the labor market that gives them the long steerers to inflation. It sounds like a recipe for over-tightening. We've observed just as one theory, the Taylor rule is completely messed up right now.
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