The first is, do the current economic conditions simply call for central banks to revert to the past? In other words, as in the pre-GFC days, should they focus on the primary objective of maintaining price stability? My second question is, once this current inflation eases, will we see a return to the pre-COVID trend of low growth and low inflation?
And if so, should central banks use the same tools mobilized over the last ten years? Or should they recalibrate them or develop a new set of tools accounting for the current episode of unexpected high inflation? The first question, perhaps, might be easy to answer in the context of emerging topics such as digital innovation and climate change.