- 3 -  consistent and coordinated manner. What we now find, however, is that the central bank’s role that has changed with the times stands at another crossroads.
With the return of 1970s-style inflation for a variety of reasons—expansionary fiscal policy, low interest rates and UMPs, and supply bottlenecks resulting from the pandemic and the war in Ukraine—we must yet again rethink the role of central banks.5)  Under these circumstances, we cannot but reflect on how the role of central banks should adapt. Let me start by asking a few questions.