Kohn: Central banks suffering from ‘groupthink’

Kohn said the Fed and BoE could benefit from greater intellectual diversity among policymakers. — Bloomberg

LONDON: Central banks need to break the stranglehold of Keynesian economics to end the groupthink that may have been partially responsible for the delayed reaction to soaring inflation, says Donald Kohn, a former Federal Reserve (Fed) and Bank of England (BoE) policymaker.

Kohn said the Fed and BoE could benefit from greater intellectual diversity among policymakers.