Focus is needed on improving central bank forecasts

Goodhart, C. A. E. (2023). Focus is needed on improving central bank forecasts. Central Banking,
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On August 7, David Bholat suggested that it was ‘Time to pay policy-makers based on their performance’. Like all good economists, Bholat has been keen to adjust incentives so that those involved are encouraged to perform better, in this case the senior members of the monetary policy committee (MPC). While his intention was good, I think his target was misdirected, and could be improved.

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