IMF chief plays down raising inflation targets
The head of the International Monetary Fund said Saturday it still believes in "low and stable inflation" despite a suggestion from its chief economist that targets could go higher.
At a conference in Cambridge, eastern England, Dominique Strauss-Kahn played down proposals made by Olivier Blanchard in February that inflation targets could be raised from about two percent to four percent to allow central banks to respond better to shocks.
"I think this is an interesting idea that merits serious discussion, but it is not the principal question for monetary policy and should not distract us from more important concerns," he said.
"Let me also be clear: we remain an institution that believes that low and stable inflation delivers positive benefits for growth and macroeconomic stability.”
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