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INET posted this Working Paper on 14 August 2023. It is argued that monetary policy should be guided much more by financial sector developments (credit and debt) and much less by near term targets for inflation.  This argument is first supported by an historical review of the negative outcomes produced by the current policy framework. A second level of support is provided through questioning the theoretical arguments underpinning the current framework. The search for an alternative monetary policy framework would begin with the observation that an economy is a complex, adaptive system like many others in nature and society. From this perspective, arguments for introducing a “narrow money” regime need more attention than they have thus far been given.

https://www.ineteconomics.org/research/research-papers/why-the-monetary-policy-framework-in-advanced-countries-needs-fundamental-reform

The C D Howe Institute in Toronto published an Intelligence Memo by William White on 14 April. He suggests that at least four of the global systems needed for human survival and progress are showing signs of extreme stress. Our market based economic system, the environmental system, our democratic political systems and our public health systems are all in danger. Since the underlying problems must be dealt with urgently and simultaneously, “build back better” seems inadequate as a clarion call for action. Canada has certainly contributed to the development of these global problems but, by taking appropriate measures to address them speedily at the national level, Canada might encourage other nations to do the same.

https://www.cdhowe.org/intelligence-memos/william-white-%E2%80%93-build-back-better-may-not-be-sufficient

Charles Goodhart and Manoj Pradhan recently published a book called “The Great Demographic Reversal: Aging societies, waning inequality and an inflation revival”. William White’s review of this book was published in “The Market” on 1 December 2020. White strongly recommends reading this book, both for the clarity and force of the arguments it contains but also its bravery. Contrary to informed opinion that deflation looms, the book suggests that demographic changes at the global level might be leading to both slower real growth and more inflation. Goodhart and Pradhan then spell out some of the unpleasant side effects of such developments. White generally concurs, but presents some arguments for expecting even more inflation thanGodhart and Pradhan seem to suggest.

https://themarket.ch/meinung/will-the-next-decade-see-the-return-of-inflation-ld.3096