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Complexity of central banking challenges its legitimacy

Published May 25, 2018 Updated May 25, 2018 02:03pm

Inflation may react slower to unconventional policy so the public could struggle to understand what central banks are doing, challenging their legitimacy, Coeure told a conference in Stockholm.

"Output legitimacy may be more difficult to assert if inflation is proving to be less reactive to central bank actions in the short term," he added.

Copyright Reuters, 2018