, Columnist
For Central Banks, Omicron Is Another Word for ‘Reset’
And reset is another word for ‘buying time’ for policymakers caught between the end of stimulus and surging inflation.
Here we go again?
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Since the summer, it's not been a fun time to be a central banker: What with not-so-transitory inflation playing havoc with official targets and leading to some pretty terrible attempts at forward guidance. Yes, I'm looking directly at you, Bank of England.
But the Old Lady of Threadneedle Street has not been the only major institution struggling to chart a clear course in the Covid era. Everyone’s been unsettled since the global economy shut down suddenly only to reopen with a jolt. It's a tough balancing act for central bank policymakers to appear competent.