Is Monetary Policy Still Regulatory Policy Nowadays?

In a double lecture at the University of Lucerne, Joachim Nagel and Thomas Jordan discussed current inflation. The speakers emphasized the importance for central banks to have a living regulatory policy. Joachim Nagel explained that clear rules and guard rails are essential for a successful monetary policy to ensure prosperity and price stability. Fighting the current inflation was the Bundesbank’s primary goal, he said. Nagel predicted a possible double-digit inflation rate, but also a possible slowdown in 2023 with the aim of heading back toward a 2% inflation rate in the medium term.