As I had been predicting for a long time. Why 25?
Because now they are quite close to the neutral rate, meaning the risks of accelerating inflation are tiny. If they get to 11% and stop (as I predict), inflation will likely remain in the vicinity of 6% -- pending supply shocks. And that´s good enough -- never mind the 4.5% target
How much above 11% would be required to inflation return to target? If it was adopted, would it have significant effect on activity?
ReplyDeleteI think 13 would suffice
ReplyDeleteIt would hurt a bit
U agree Cesg?