Inflation may appear contained these days, but the future is always unclear.
As we discussed in our previous post, there’s a persuasive new report making the rounds that extends further support for the notion that human beings are in control of their own monetary fate. That, at least, is true in a world where fiat currencies prevail and the gold standard is considered the financial equivalent of the horse and buggy.
If central bankers can excel (as they have in recent years) at their appointed task of controlling inflation through enlightened monetary policy, they can also stumble (as the decade through the early 1980s reminds). Perhaps success will continue into perpetuity for the grand task facing the Fed and its counterparts around the world. Alas, we’re unsure of the outcome one way or the other in the long run. So it goes in matters where human beings are in charge.