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MNI: Central Banks Need Humble Approach After Covid Errors:G30

(MNI) OTTAWA

Three former central bank chiefs author report panning data dependence, extraordinary stimulus and misdiagnosed inflation.

Central banks must learn painful lessons from errors made through the pandemic and return to basic economic stabilization to avoid domination by governments or financial markets, a G30 group of former officials said in a report Thursday.

The 60-page document is sweeping in criticism of many of the major tenets of central banking laid out since the 2008 financial crisis, and the main authors include three former policymakers: Jacob Frenkel of Israel, Raghuram Rajan of India and Axel Weber of Germany. The G30 is also chaired by former BOE and BOC chief Mark Carney and other members include former Fed officials Roger Ferguson and William Dudley.

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Central banks must learn painful lessons from errors made through the pandemic and return to basic economic stabilization to avoid domination by governments or financial markets, a G30 group of former officials said in a report Thursday.

The 60-page document is sweeping in criticism of many of the major tenets of central banking laid out since the 2008 financial crisis, and the main authors include three former policymakers: Jacob Frenkel of Israel, Raghuram Rajan of India and Axel Weber of Germany. The G30 is also chaired by former BOE and BOC chief Mark Carney and other members include former Fed officials Roger Ferguson and William Dudley.

Keep reading...Show less