At the very least, it seems to me that we need to take account of a wider range of economic and financial consequences while targeting low inflation. An evolution of central banking is already under way, supported by recent experience and new research. Today, I hope to inspire economists here and elsewhere to join these efforts.
Although economic growth was relatively well maintained over the past year, several forces have continued to weigh on the economy: the lengthy adjustment of capital spending, the fallout from the revelations of corporate malfeasance, the further decline in equity values, and heightened geopolitical risks.