-
Cara posted an update 8 years, 6 months ago
This is a speech given by Claudio Borio, Head of the Monetary and Economic Department at the BIS (Bank of International Settlements) in Lonon recently (22 September). It looks at inflation and questions the assumptions that are used to manage it by central banks.
https://www.bis.org/speeches/sp170922.htm
The Giza Forum (Legacy)
Closed Archive of The Old Forum
What I find most astonishing are the frequent comments that seem to indicate a prevailing view of the central bankers that the world of monetary policy is decoupled from real world factors, at least in the models they use. I don’t know if this is just the terminology and jargon they use but my reading of the speech and reviewing of the graphs included here makes me suspect that this is in fact the case: they are working through so many layers of abstraction and assumption that it really does seem like a created universe of “instruments” and measures which are unmoored from any reality.
When did Post Modernism come to be so pervasive in the world of finance? Or is it the other way around: the non-reality of monetary policy and finance spawned Post Modernism? The opening of the speech with the Alice Through the Looking Glass quotation is apt in more ways than the author probably intended.