EFTA Document EFTA01388568

The limits of monetary policy 10--tion M.00, 7rir.ii Not so long ago, central banks had a clear, but limited task. To he sure, them were small variations in terms of the mandate of central banks around the developed world. But essentially, monetary policy was a decision on when to adjust interest rates- ideally raising them before economic overheating and cutting them in time to mitigate or avoid a looming slump. How quickly an economy would grow in the longer term, though, was largely de