We have some flexibility within our inflation - targeting framework: we might accept a slower return of inflation to target, if necessary, to avoid adverse effects on financial stability. (bankofcanada.ca)
US central bankers saw costs and benefits to an economy operating «well above potential», ranging from a faster return of inflation to target and an increase in labor force participation. (afr.com)
A pessimistic reader could certainly identify gloomy ingredients for the «perfect storm»: the potential for a painful steepening of bond curves, after a sustained flattening as in 2003, coupled with monetary tightening; and a multi-year period of sustained losses due to a structural return of inflation as in 1967. (businessinsider.com)