India’s seven-day COVID average at new high, WHO issues warning on strain
India’s coronavirus crisis showed scant sign of easing on Tuesday, with a seven-day average of new cases at a record high and international health authorities warning the country’s variant of the virus poses a global concern.
Pitfalls of average inflation targeting when agents have imperfect knowledge
Recent challenges have generated interest in new monetary policy frameworks, including average inflation targeting. The Federal Reserve adopted this policy in 2020, but they have not communicated many details about the policy itself. This column argues that an opaque average inflation targeting policy can de-anchor inflation expectations from the target equilibrium – even if expectations are initially well-anchored. Policymakers should be cautious when implementing average inflation targeting.
