Across 37 advanced economies, inflation levels/variability and growth variability track overall institutional quality, not central bank features like independence, inflation targeting, or exchange‑rate regime. The same analysis explains 2022’s inflation resurgence chiefly by reliance on Russian imports (gas) interacting with post‑COVID GDP growth, not by a breakdown of the Great Moderation.
— This shifts macro policy debates from redesigning central banks to improving institutional quality and energy resilience, and tempers narratives blaming monetary frameworks for recent inflation.
Tyler Cowen
2025.10.15
95% relevant
The cited paper finds that across 37 advanced economies, inflation levels/variability and growth variability track overall institutional quality rather than central‑bank independence, inflation targeting, or exchange‑rate regimes, and that 2022 inflation was driven mainly by reliance on Russian imports interacting with post‑COVID growth—precisely the claim in the existing idea.
Tyler Cowen
2025.10.11
100% relevant
Livio Stracca’s paper (summarized by Tyler Cowen) finding institutional quality drives long‑run central bank 'performance' and that 2022 inflation mapped to Russia import exposure plus growth.
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