Navigating the Implications of Monetary Policy Changes

This chapter explores the complexities of altering inflation targets and implementing unconventional monetary policies to address economic challenges. It discusses the repercussions on wages, mortgages, and public acceptance, as well as the challenges posed by large central bank balance sheets and remittances on QE programs. The dialogue delves into unintended consequences, moral hazard problems, and the impact of central bank interventions on financial stability during market disruptions like the COVID-19 pandemic.