Its mistake, he argues, was to aim for price stability, rather than to allow prices to fall in line with productivity gains.
As laid out in law, decisions are made with a primary aim of price stability, defined by the government's inflation target (2% on the Consumer Price Index as of 2011).
ANY central banker worth his salt knows what central banks are meant to do: aim for "price stability".
"You know where you've got to aim on price, and now we are thinking about what can be built for this amount," Sir John said in an interview.
It is popularly argued that the sharp rise in inflation could have been avoided if only central banks had been using modern monetary-policy frameworks, which aim at price stability.
"The question remains whether the QE programme was really necessary given our primary aim of price stability and how we should assess the risks and side-effects that inevitably come with such a scheme," he said.
BLOOMBERG NEWS Evonikik Faces a Skeptical Market | As the German chemical company Evonik makes its second attempt to go public, investors are saying it should aim to price at a discount to rivals, Reuters reports.
They also aim to price cannabis cheaply enough to tempt users away from harder drugs such as cocaine and crack.Mr Mujica's left-of-centre government has a majority in both houses of Congress.
Traditional New Keynesian models prescribe that optimal monetary policy should aim at price stability.
And in a filing on Friday said it would aim to price shares between $14 and $16, according to the Wall Street Journal.
She stuck to European Commission plans that aim for prices to fall 39percentt, but proposed that the measures be phased in over four years starting in 2006.
