The Illusion Of Central Bank Control

Central banks are sometimes given too much credit - or too much blame - for outcomes  that lie largely beyond their control.Indeed, as UBS strategist Arend Kapteyn writes, most of the variation in DM inflation is beyond  central banks' control

Before the pandemic, in advanced economies (DM), 73% of deviations in inflation from its long-term trend could be attributed to food and oil prices, which are primarily driven by global factors and weather rather than monetary policy.