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Paul Mortimer-Lee, the Chief Economist and Head of US Economics for BNP Paribas, wrote an op-ed piece for the Financial Times claiming that too-tight monetary policy is to blame for struggling inflation figures.

Mortimer-Lee noted that according to a recent report by Claire Jones and Sam Fleming, central bankers have been grappling with the “riddle” of low inflation for some time, and the report says that “almost everything” has been cited as a possible reason, except for the fact that monetary policy has simply been too tight for too long.  

“Real rates have been too high because inflation targets are too low. The chances of the next recession leaving the major advanced economies stuck at the lower bound for rates are very high. Inflation will ratchet lower and we can see quantitative easing is not a solution.”  

– Paul Mortimer-Lee, The Financial Times