El-Erian: Markets, Central Banks Have Become 'Overly Data-Dependent'

The video discusses the challenges faced by central banks, particularly the Fed, due to their data dependency and the market's focus on short-term data releases. It highlights the shift in the global economy from insufficient demand to insufficient supply, leading to higher interest rates. The video also examines regional risks: financial fragility in the US, stagflation in Europe, and deflation in China. It concludes with a debate on whether central banks should adjust their inflation targets, considering the changing supply side and credibility concerns.

What are the major issues that the market is currently facing according to the text?

How has the global economy changed compared to the last decade?

What are the three different risks mentioned for the US, Europe, and China?

Why do central bankers hesitate to change their inflation target?

What is the significance of the credibility concern for central banks?