There is a danger not just of loosening too soon but of loosening too far
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Martin Wolf What can we learn from monetarists about what happened to prices after the COVID-19 pandemic struck? What can we learn from the mistakes made in the 1970s? The purpose of posing these questions is to inject humility into current debates, especially among central bankers. Their failure to forecast, or prevent, the big jumps in price levels of recent years is significant. So, why did it happen and what might history suggest about the mistakes still to come? It is…
