"I’ve just asserted that there’s no link between deficits and - TopicsExpress



          

"I’ve just asserted that there’s no link between deficits and inflation in advanced countries with independent central banks. The word independent deserves special emphasis because it is essential to a central bank’s inflation-fighting credibility. As long as monetary authorities have the freedom to fight inflation without interference, then deficits won’t pull them off course. When we examine the evidence from countries around the globe, we clearly see that independent central banks have been more successful in delivering lower inflation. Indeed, the purpose of independence is to insulate central bank decision makers from pressures that might distract them from their core monetary policy objectives." - Janet Yellen
Posted on: Fri, 30 Aug 2013 21:24:58 +0000

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