What’s Happening in the World Economy: Central Bankers Stay Calm on Inflation

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Hello and happy Friday. Today’s Newsletter is all about inflation.

The Inflation Line

One is leading the world’s grandest monetary experiment to revive prices; the other heads the central bank that pioneered inflation targeting.

Both spoke exclusively to Bloomberg News and each has the same message for jittery markets worried about inflation: relax already.

First up, Bank of Japan Governor Haruhiko Kuroda told us that inflation concerns were most relevant in the U.S. and cited Federal Reserve Chair Jerome Powell’s view that price pressures will prove transitory and stimulus should stay in place for longer.

“That policy stance is based on the recognition that it will take time to overcome low inflation once it is entrenched,” Kuroda said. “That is the lesson learned from Japan’s experience of prolonged deflation.”

Haruhiko Kuroda

Photographer: Stefan…

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