Daniel Moss, a Bloomberg Opinion columnist, is warning of increased economic shocks and inflation pressures worldwide. The former executive editor for global economics and government at Bloomberg News advocates for reforming rather than abandoning inflation-targeting frameworks, arguing that the world has entered an era of more frequent and severe economic disruptions, from geopolitical conflicts to energy price volatility. Moss recommends keeping inflation targets while allowing them to evolve, such as by widening tolerance bands or extending time horizons. For markets, more flexible inflation targets would make interest rate paths harder to predict, increasing volatility in bond markets and creating currency market tensions if major central banks reform their frameworks at different paces or in different directions.
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