But with politicians determined to tighten fiscal policy too fast, the central bankers need to stay loose for longer.America's inflation also argues for erring on the side of looseness.
There was a nice balance of looseness and restraint; of drama and discipline.
At the same time an explicit target of 10% would set a limit to the looseness, preventing people's expectations for inflation becoming permanently unhinged.
Governments need to boost demand by spending more on infrastructure; central banks should err on the side of looseness.
At a time of fiscal austerity, even of a more calibrated sort, monetary looseness is essential as the Bank of England has admirably shown (see article).
It unravels on a set that looks like a messy attic and generally encourages a charming impression of ramshackle looseness, though in fact everything is meticulously calibrated.The basics are just as they are in the recently released Disney movie adaptation.
While central bankers are laying out their exit strategies from monetary looseness in detail, few finance ministers have done anything similar on the fiscal side.
This seems to stem from its embrace of sharing, combined with its social looseness: unlike on Facebook, real names aren't required (only an e-mail address), and users can present different personalities to the world through different blogs.
The pact was designed to limit the degree of fiscal looseness, or indiscipline, in the euro zone.
At the same time, Fed looseness has caused headaches for countries, such as many Gulf states, that peg their currencies to the dollar.
Instead, the BIS, which is pretty sure that it is, finds a different measure of policy looseness with which to justify its call for higher rates: the financial cycle.There are two big problems with using this conclusion to argue for rate increases, however.
