Gartside: Central Banks' Framework Increasingly Redundant

The video discusses the need for central banks to focus on higher inflation targets and nominal GDP, highlighting the historical context of inflation targeting from the 1980s. It critiques the current economic framework as outdated, emphasizing the shift towards goods deflation and disinflation. The video explores the potential benefits of targeting nominal GDP, such as lower real interest rates and debt management, while acknowledging the limits of monetary policy. It stresses the increasing importance of fiscal policy and examines the divide between service sector and goods deflation, considering global economic changes like China's rise.

What historical context is provided regarding inflation targeting and its development?

How has the framework for central banks become redundant in the current economic climate?

What challenges do central banks face in the current economic environment?

What is the significance of targeting nominal GDP according to the text?

In what ways does the text suggest that fiscal policy needs to adapt in response to monetary policy limitations?