Copying and distributing are prohibited without the permission of the publisher. If you wish to distribute this content please contact Christopher Hunt (firstname.lastname@example.org) for a quote.
Subscribe today: Order Euromoney by contacting us on +44 (0)20 7779 8999 (UK) or +1 212 224 3570.
The push by incoming Bank of England governor Mark Carney for a flexible inflation-targeting regime and the promotion of forward rate-guidance, in particular, risks sowing the seeds of price instability. The ‘expectations hypothesis’ has weak academic roots and has been rarely implemented in practice, argues Finn Poschmann, economist at the CD Howe Institute, a public policy think tank in Toronto.