Tag: monetary policy
A long standing Fed President, William McChesney Martin, kept saying that the central bank is like a good chaperone at a party: one that cares that the guests always have enough punch in their glasses. When the atmosphere gets too hot, the punch bowl must be taken away. If spirits are low and the guests are floating about sluggishly, punch must be topped up.
“The new inflation projection shows that there is room for a safe decrease in interest rates, and so the Monetary Policy Council made a fairly radical cut. The Council had been moderate in its responses to the increase in inflation, whose sources were external. Inflation targeting strategy is about responding flexibly, not frantically,” said Professor Marek Belka, President of the NBP, in an interview for Financial Observer.