Economics
World Economy Needs Policy Reset to Revitalize Growth, BIS Says
- Attention must shift from managing demand to helping supply
- Central banks must focus on inflation, work with governments
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The global economy risks sustained weakness without a change in how it’s run, according to Agustin Carstens, who heads the Bank for International Settlements.
The pandemic and war in Ukraine have proved a “rude awakening” for central banks, which had assumed for too long that supply adjusts automatically and smoothly to shifts in demand, Carstens told the Federal Reserve’s annual Jackson Hole symposium.