Buy-side execs question wisdom of targeting higher inflation
The argument for raising inflation targets is that it would give central bankers more room to use interest rate policy, but some investment industry executives have their doubts about the concept.
While global economists and academics at Jackson Hole, the annual US monetary policy conference, looked for clues on the likelihood of a US interest rate hike in late 2016, Federal Reserve chairwoman Janet Yellen focused instead on discussing the limitations of monetary policy.
Behind the scenes, say market commentators, the Fed and other central banks are quietly urging global political leaders to develop other policy tools to stimulate demand.
One monetary policy concept that …
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