Rates are rising at unprecedented speed. When will they bite?
Long lags in monetary policy are no argument for inaction
If you want to impress central bankers, inject “long and variable lags” into a conversation and heave a heavy sigh. The phrase, coined by Milton Friedman, a Nobel-prizewinning economist, is sophisticated shorthand for the delayed and uncertain effects of monetary policy.
This article appeared in the Finance & economics section of the print edition under the headline “The drag from lags”
Finance & economics October 15th 2022
- Emerging markets look unusually resilient
- After China’s party congress, is there hope of better policymaking?
- As Europe falls into recession, Russia climbs out
- Rates are rising at unprecedented speed. When will they bite?
- Three economists win the Nobel for their work on bank runs
- Who will survive the fintech bloodbath?
- Credit-default swaps are an unfairly maligned derivative
- Energy shocks can have perverse consequences
From the October 15th 2022 edition
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