Şebnem Kalemli-Özcan sees current conditions as fundamentally different from those in which modern inflation targeting was designed.
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Economics
May 29, 2026
Şebnem Kalemli-Özcan
The core assumptions underlying the decades-old inflation-targeting orthodoxy have proven to be unfit for a geopolitically fragmented world characterized by frequent supply-side disruptions. Under such conditions, central banks' traditional monetary policies are only as effective as markets believe them to be.
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