Inflation targeting

Brad De Long has a look at the risk-increasing implications of an inflation target that is too low.

It’s interesting to me how the US is still so focussed on concerns about inflation being too high or USD depreciation when the real risks are unemployment and, yes still, deflation.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.