Sintra | Central banks must accept the “uncomfortable truth” that they may have to tolerate a longer period of inflation above their 2 per cent target in order to avert a financial crisis, the deputy head of the IMF has warned.
Gita Gopinath told the European Central Bank’s annual conference in Sintra, Portugal, that policymakers risk being faced with a stark choice between solving a future financial crash among heavily indebted countries, and raising borrowing costs enough to tame stubborn inflation.
