RIYADH/WASHINGTON (Reuters) – Central bankers from the United States, Japan and the euro zone meeting in the desert kingdom of Saudi Arabia this weekend had their own shifting sands to cross – those of elusive inflation.” The problem facing all three is that price growth has long stopped behaving as expected, as aging populations and technological advances prevent inflation from meeting their cherished 2% target despite aggressive stimulus measures. […] The meeting of finance leaders from the world’s 20 top economies in Riyadh provided a chance for Federal Reserve Chairman Jerome Powell, ECB President Christine Lagarde and Bank of Japan Governor Haruhiko Kuroda to compare notes. […] Mindful of such dangers, the Fed is in the midst of its framework review that focuses on how it should pursue 2% inflation using tools such as forward guidance. […] To tackle this, the Fed has looked into ideas such as a “make up strategy,” under which a central bank promises to allow inflation to run above target to make up for times of weakness in the economy.
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