The fragile triangle. Price stability, bank regulation and central bank reserves

• Hans Gersbach interviewed by
• Tim Phillips
• 2 Nov 2021

For the first time in a generation, economists are worried about inflation risks in advanced economies. Hans Gersbach argues that the risk to price stability is higher than we assume. The reason: tightening bank regulation that has massively increased central bank reserves.

Read more about the research discussed:

Hans Gersbach, The fragile triangle: Price stability, bank regulation and central bank reserves, CEPR Policy Insight No 112