How central banks weigh the risk of inflation against the risk of slowing growth
Interest-rate decisions are a judgement about which mistake would be more costly. Here is how policymakers frame that choice.
Inflation
How compounding works for savers and against borrowers, often in the same household
Interest that earns interest is the most powerful force in personal finance. It rewards patience on one side of the balance sheet and punishes delay on the other.
Central bank independence is worth defending, even when it is inconvenient
Insulating monetary policy from day-to-day politics has costs. Abandoning it would cost more.
Why productivity growth, the root of rising living standards, is so hard to measure
Over the long run, almost nothing matters more for prosperity than producing more from the same effort. Yet statisticians struggle to capture what is actually being produced.
