\n
You can save this article by registering for free here. Or sign-in if you have an account.<\/p>\n<\/div>\n<\/div>\n
The United States Federal Reserve last week signalled a willingness to tolerate higher inflation for longer and an openness to slow the ongoing reduction in its balance sheet.<\/span> Photo by Andrew Harrer\/Bloomberg<\/span><\/figcaption><\/figure>\n<\/div>\n<\/header>\n\nArticle content<\/h2>\n By Mohamed El-Erian<\/strong><\/em><\/p>\nIt would not surprise me if future economic history books were to look back at the last week in central banking as marking a move away from strict inflation targeting by the world\u2019s most influential central banks.<\/p>\n<\/section>\n\nArticle content<\/p>\n
While far from being definite or risk free, it is a shift that would be consistent with superior economic outcomes and stands a reasonable chance of working. And it is a policy approach that is likely to be superior to others as central banks tackle an operating environment that is particularly fluid economically and politically at domestic and global levels.<\/p>\n<\/section>\n
\n
\nAdvertisement 2<\/p>\n
\n
\n
\n
\n
This advertisement has not loaded yet, but your article continues below.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n
\n
\n\n<\/p>\n
\n
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY<\/p>\n
Subscribe now to read the latest news in your city and across Canada.<\/p>\n
\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n Daily content from Financial Times, the world’s leading global business publication.<\/li>\n Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\n
SUBSCRIBE TO UNLOCK MORE ARTICLES<\/p>\n
Subscribe now to read the latest news in your city and across Canada.<\/p>\n
\nExclusive articles from Barbara Shecter, Joe O’Connor, Gabriel Friedman, Victoria Wells and others.<\/li>\n Daily content from Financial Times, the world’s leading global business publication.<\/li>\n Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.<\/li>\n National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.<\/li>\n Daily puzzles, including the New York Times Crossword.<\/li>\n<\/ul>\n<\/div>\n\n
REGISTER \/ SIGN IN TO UNLOCK MORE ARTICLES<\/p>\n
Create an account or sign in to continue with your reading experience.<\/p>\n
\nAccess articles from across Canada with one account.<\/li>\n Share your thoughts and join the conversation in the comments.<\/li>\n Enjoy additional articles per month.<\/li>\n Get email updates from your favourite authors.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/header>\n