“Front-loading” monetary tightening: pros and cons
BISness
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The Pros and Cons of Front Loading
Front loading tends to safeguard reputational capital of the central banks. Undershooting or overshooting your inflation target can have strong reputational effects that over time, you wrote central banks' credibility and negatively affect central banks' efficacy. So I think there are kind of longer term consequences that are just beneficial in the trust of the institutions.
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