NEW YORK – To explain why forecasters at the US Federal Reserve and other major institutions missed the mark on inflation in recent years, it is tempting to conclude that they were blindsided by unpredictably large shocks. But if the prevailing models work only when variables are relatively stable, they are of little use. Last year, following ...

NEW YORK – There are three main reasons for the European Central Bank's excessive inertia in the facing of changing economic circumstances, and all relate to its internal decision-making process. Fortunately, that means the problem that has plagued it in recent years is fixable from within. The European Central Bank too often finds itself ...