A Tale of Two Defaults
Gros, Daniel. Once upon a time, there was a country plagued by large deficits, high inflation, and decades of economic stagnation. When economic problems once again became particularly acute, the country’s leadership embraced a radical approach to achieving price stability. A new currency was introduced and pegged to the US dollar at a one-to-one exchange […]
Seeing Double at Central Banks
Yueh, Linda. Central banks are now targeting liquidity, not just inflation. The credit boom of the past decade highlighted the inadequacy of focusing only on prices, and underscored the need for the monetary authority of a country (or group of countries in the case of the European Central Bank and the eurozone) to monitor the […]