Fed, Main Central Banks Should Rethink Crisis Response, G30 Says.

A report from the Group of 30, an influential forum of policymakers and academics, suggests that the Federal Reserve and other major central banks should reconsider their response to economic downturns and financial crises. The report argues that central banks should avoid keeping money easy for the sake of profligate governments and exuberant investors. It also criticizes the Fed and other major central banks for their delayed response to inflation and their reliance on economic models that incorrectly predicted the price surge would be temporary. The report praises emerging market central banks for acting quickly to combat mounting price pressures. The expert panel warns of the danger of fiscal and financial dominance of central banks and advocates for central bankers to rely less on discretion and more on simple and transparent rules. [Extracted from the article]