Insight - What ‘The Wizard of Oz’ can teach us about inflation

The International Monetary Fund recently foreshadowed cuts to its growth estimates and warned central bankers to be vigilant.

SURE, we need to live with the virus. What’s not said enough is that this means being comfortable, or at least adapting to, uncertainty in central bank communication.

These officials aren’t epidemiologists and they don’t know where Covid-19 is going. The hand-holding that’s characterised the past two decades is hard to justify, and shouldn’t be expected going forward.