A shift to a higher inflation target would not only raise significant credibility issues ‒ we should also remember that prevailing definitions of price stability have a welfare foundation. 5 Everything else being equal, higher inflation objectives inevitably come together with distortions that are harmful from a welfare perspective. Meanwhile, we are still furthering our understanding of the many features which characterise non-standard measures.
Thank you to John Bryant and Operation HOPE for inviting me today to open the HOPE Global Forums.1 I commend our hosts for bringing together such an impressive group of speakers and attendees, diverse in their perspectives, yet all of whom share the vital goal of advancing economic opportunity and inclusion.