Fears we are facing a period of prolonged inflation are "unfounded", said Monetary Policy Committee (MPC) member Adam Posen, speaking on a day when UK inflation dropped sharply.
In a speech on Tuesday at the Royal Institute for International Affairs in London, Posen said the political risk set to affect investments in the real economy will not extend to the monetary environment. “I know there are some people out there concerned that we are facing a coming period of inflation, with central banks untethered, if not actively inflating away government debt. These concerns are unfounded. “As I have argued for nearly 20 years, independent central banks pursue price stability over the medium-term because there is effective opposition to inflation in those societies ...
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