Central Banks Need To Learn To Adjust To This New Inflationary Paradigm

EDITOR'S NOTE: This speech by Agustín Carstens, General Manager of the Bank for International Settlements may be something of a shocker. Not too long ago, he spoke of transactional anonymity as an irrelevant issue in today’s financial world; boasting that all money, in the form of central bank digital currencies (CBDCs), may one day be controlled by the BIS and that no transactions will take place without their knowledge. Watch Video at 4:33 to see exactly what he says. In the speech below, however, he warns that inflation may continue to increase far higher and longer than most economists expect: “We should not expect inflationary pressures to ease soon as many of the forces behind high inflation remain in place and new ones are emerging.” He argues that the world is facing a new inflationary paradigm; one that the world economy must adapt to; a new normal. But the real surprise is when he writes that “the world economy must learn to rely less on expansionary monetary policies.” Seriously? Wouldn’t that mean stripping central banks of their main powers, possibly leading to the end of the fiat system?