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By Bruno COLMANT, Ph.D., Member of the Royal Academy of Belgium
The nightmare of central banks is no longer theoretical. It is unfolding now, in real time. A recent article in the Financial Times described central bankers as “shamans,” a striking metaphor for officials who increasingly govern through psychology, communication, and ritualized signals as much as through actual control over the economy. Markets no longer react only to interest-rate decisions; they scrutinize every nuance of language, every hesitation, every sentence uttered by the heads of central banks.
But the difficulty today is that reality is slipping out of their control. Energy inflation, initially seen as temporary, is spreading across the entire economy. Transportation,...
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