Rethinking Monetary Policy: Adapting Central Bank Approaches in 2024 and Beyond

William White presented a webinar to the Global Risk Institute in Toronto on 7 February 2024 in which he questioned the wisdom of central banks targeting inflation. His presentation was based on  Working Paper No 10, published on 3 August 2023 by INET. He began by documenting some facts: in particular, how the aggressive easing of monetary policy after the bursting of financial “bubbles” in the 1980’s and 1990’s led to a series of still bigger “bubbles” and the uncertain future still facing us today. He then turned to an analysis of how certain “false beliefs” of central banks had led them to conduct policy as they did. White then gave some brief consideration as to to how alternative monetary policy frameworks might have left us facing fewer policy challenges than we currently do.