Yes, central banks such as the Federal Reserve or European Central banks have quite a few tools at their disposal but let's just say that those who consider these tools "superpowers" are being a bit too optimistic.


In one minute, we will analyze the proverbial superpowers of central banks in an effort to determine their limitations. This is extremely important because especially after the Great Recessions, central banks essentially became "rock stars" and ended up in the spotlight even more so than in the past.


At the same time, however, they have failed rather embarrassingly when it comes to their mandate of generating consumer price inflation. As explained in this video, we have had asset price inflation (if you will) across the board and a wide range of bubbles but "actual" inflation is still nowhere to be found.


Why is it that despite their various superpowers, central banks such as the Fed or ECB have not managed to create consumer price inflation? In approximately one minute and forty-four seconds, we will find out :)

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