From the FT’s always excellent Martin Wolf on what central banks need to think through for the next recession (which may not be far away):
One would be to do nothing. Many would call for the cleansing depression they believe the world needs. Personally, I find this idea crazy, given the damage it would do to the social fabric.
A second possibility would be to change targets, possibly to ones for growth or level of nominal gross domestic product or to a higher inflation rate. .
