Bernanke Dismisses IMF Debt Whores Encouraging a 4% Inflation Target
Ben Bernanke has some sympathy for the Bank of Japan and it's obvious why, he's probably got some deflation envy. Still, he gets props for deflecting the question and, dare I say, telling them to fuck off with their 4% shit.
In a question-and-answer session following his speech, Bernanke lent some tacit support to the BOJ's "understanding," by noting the global inflation consensus, and mentioning the Fed's own close price goal.
"Central banks of the world over many years now have established a great deal of credibility for inflation rates in the vicinity of about 2%. And it would be a very risky transition if we in any way reduced our commitment to ... an approximate 2% inflation target," he said, according to Dow Jones Newswires.
Bernanke was responding to a question about an International Monetary Fund paper suggesting that a 4% inflation rate could give central banks more maneuvering room to conduct policy.
The IMF might be happy with more "maneuvering room" and promptly swoop in to bail us out to say "I told you so," all with Tim Geithner on payroll.