‘Cheap money at ECB makes fighting inflation difficult’
The European Central Bank needs to review its special programmes that make available cheap money to banks in Europe in order to become more effective in fighting inflation, Banque de France governor François Villeroy de Galhau told central bankers at their meeting in Jackson Hole.
Swiss central bank is proud of its narrow mandate
Central banks worldwide will need to face the fact that pressure on prices will remain high for the coming years and that inflation dynamics will continue to be clouded by uncertainty, Switzerland’s central bank chief has told his colleagues in Jackson Hole. The Swiss central bank also prides itself in working with a narrow mandate that is not influenced by political considerations.
Jackson Hole shows the narrow path is narrowing
“Walking the narrow path” is an expression among central bankers about striking a fragile balance between reining in inflation and not plunging the economy into the ravine. Friday showed how difficult that task has become.