Carstens: Central Banks Need to Remain Vigilant

The video discusses the challenges of controlling inflation, focusing on core inflation and the role of wages and labor markets. It emphasizes the importance of maintaining a 2% inflation target to ensure economic stability. The interaction between monetary and fiscal policies is explored, highlighting the need for coordination to avoid conflicting efforts. The slow transmission of policy effects is examined, with a focus on the impact of higher interest rates on the economy and banking sector. The video concludes with a discussion on the global implications of China's economic recovery.

In what ways can fiscal policy affect monetary policy during inflationary periods?

What are the potential risks associated with higher interest rates in the context of financial stability?

How does China's economic recovery impact global growth and inflation?