, Columnist
What a New Cold War Means for Central Banks
Think the battle against inflation is tough? Protracted US-China competition may have profound consequences for monetary policy.
Danger zone.
Photographer: Ted Aljibe/AFP/Getty Images
This article is for subscribers only.
The battle against soaring prices is little more than a year old and central banks need to gird for the next big trial: Serving their nations in a world defined by protracted competition between the US and China. Policymakers will be reluctant cold war warriors — they are more comfortable aiming at inflation targets and tinkering with guidance on interest rates than fending off strategic adversaries.
Unfortunately, they don’t have the luxury of sitting this out.