Central Banks Don’t Understand Inflation, Says Issing

The video discusses the independence of central banks, particularly the Bank of England, and their role in managing inflation. It highlights the global phenomenon of low inflation and questions the effectiveness of the Phillips Curve in explaining unemployment and wage dynamics. The challenges faced by central banks, including high expectations and the need to maintain financial stability, are explored. The Bank of England's performance, especially in the context of Brexit, is evaluated.

Why does the speaker believe the Phillips curve is not functioning as expected?

What impact does globalization have on wage growth and inflation according to the discussion?