Bosomworth: Inflation Targets Offer No Easy Solution

The transcript discusses central banks' strategies regarding inflation targets, particularly in light of potential future recessions. It highlights the challenges faced by central banks in adjusting monetary policy due to limited options for easing. The discussion includes insights from the Jackson Hole Conference and the Fed's stance on economic growth, with concerns about overheating. The transcript also examines labor market dynamics in the US and Japan, and compares economic flexibility between the US and Europe, emphasizing the impact of policy asymmetry.

Discuss the challenges central banks face in achieving their inflation targets.

What factors contribute to the differences in labor market flexibility between the US and Europe?