Former Federal Reserve Chairman: It will be harder for central banks to control inflation in the future

BlockBeats News: On March 6th, former Federal Reserve Chairman Bernanke stated that the recent acceleration of inflation experienced by the world may make it more difficult for central banks around the world to control prices in the future. Bernanke hinted that central bank governors may be more vigilant about allowing prices to soar again. He cited research showing that in the 1970s (a period when the economy was impacted by oil prices), Federal Reserve policy makers were "generally more hawkish than young people". In his prepared speech, Bernanke stated that the key lesson learned from the recent round of inflation is that central bank communication should pay more attention to the possibility that the outcome may differ greatly from the most likely forecast, and if reality differs from the forecast, monetary policy will make appropriate responses. A better communication strategy may be for the Federal Reserve to declare that its basic forecast envisions temporary inflation.