Moec, Riley on Central Banks and Forward Guidance

The video discusses a meeting of four central bankers in Frankfurt, focusing on their retrospective views and limited forward-looking insights. Mark Carney was questioned about Brexit, but the discussion did not significantly impact markets. The conversation highlights the entrenched orthodox thinking in central banks and questions its sustainability. As inflation rises, central banks will face tougher policy choices, leading to a more volatile environment for investors. The video emphasizes the need to test forward guidance as inflation picks up.

What was the main focus of the central bankers' discussion in Frankfurt?

• Technological advancements

• Retrospective views on past experiences

• Future economic policies

• Environmental issues

What challenge do central banks face according to the discussion?

• Maintaining traditional theoretical paths

• Adopting new technologies

• Reducing unemployment

• Increasing exports

Why has it been easier for central banks to have academic debates?

• Because of low inflation and high growth

• Due to environmental concerns

• Due to technological advancements

• Because of political stability

What is expected to happen as inflation starts picking up in 2018?

• Stable economic growth

• A decrease in market volatility

• Easier policy choices

• A more volatile environment for investors

What will central banks need to test as inflation rises?

• Trade agreements

• Environmental policies

• Forward guidance

• New technologies