Opinion
Central bank independence is dead
Politicians are compromising central banks’ commitments to price stability targets, and the ensuing sticky inflation will require a much tougher cost of capital to extinguish.
Christopher JoyeColumnistThe US Federal Reserve is politically compromised, and it’s entirely plausible that the Reserve Bank of Australia suffers from similar problems.
This should not come as a surprise. Central banks subjugating their inflation targets to political imperatives was always going to be the biggest asset pricing risk as we encounter the first bona fide inflation crisis since the 1980s.
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