Central banks have done a very impressive job of achieving low and stable rates of inflation in recent years. But despite past successes, they must always be ready to deal with new challenges that might arise. Sandra Pianalto, president and CEO of the Federal Reserve Bank of Cleveland, discusses some of those challenges and how central banks might best prepare for them (from a speech she gave at a conference sponsored by the Deutsche Bundesbank and the Cleveland Fed in Frankfurt, Germany, on June 6, 2007).
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Article provided by Federal Reserve Bank of Cleveland in its journal Economic Commentary.