Via the AFR:
In what would be a radical departure from a system that has served since the mid-1990s to curb the rampant inflation of an earlier generation, Professor Mckibbin argues strict inflation targeting has run its course as credible policy making tool.
“Inflation has been a good intermediate step because it tied down price expectations and gave people confidence that central banks wouldn’t deflate away their assets,” he will tell a major economics conference in Sydney on Wednesday.
