ECONOMICS - The Death Of Inflation Has Made Central Banks Victims Of Their Own Success

Central banks in the rich world may have been too successful in subduing price pressures IT TOOK an iron will (and a handbag) to beat the inflation of the 1970s. Under Margaret Thatcher the British government squeezed the economy with high interest rates until the beast submitted. The Federal Reserve, then led by Paul Volcker, followed suit. Such displays of fortitude convinced markets that governments were serious about keeping inflation low. Ex ...

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