Renowned economist Robin Brooks has made a bold prediction about the future of monetary policy. According to Brooks, central banks that allow market signals will be rewarded in the coming years. The former chief currency strategist at Goldman Sachs and chief economist at the Institute of International Finance believes this approach holds significant potential.
Brooks’ career spans multiple prestigious institutions, including his current role as a senior fellow at the Brookings Institution. His expertise in macroeconomics has earned him a cult following in Brazil, where he has been a vocal supporter of the real currency.
By allowing market signals to guide monetary policy, central banks may reap significant rewards. This approach deviates from traditional methods, which often involve large-scale interventions in the economy. Brooks’ prediction suggests that the future of macroeconomic policy may be more decentralized and reliant on market forces.
Source: https://www.marketwatch.com/story/this-expert-highlights-what-could-be-the-macro-trade-of-the-coming-years-its-not-about-trump-218f4099