Jackson Hole (Wyoming): The world’s top central bankers gather in Jackson Hole, their confidence bolstered by a sustained return to economic growth that may eventually allow the European Central Bank (ECB) and the Bank of Japan to follow the Federal Reserve in winding down their crisis-era policies.

Yet in one key area, none of the world’s central banks has found the answer. Inflation remains well below their two percent targets, stoking a debate about whether they are missing signals of a less than healthy economy and the need for a slower path of “rate normalisation”, or that they simply don’t understand how inflation works in a globalised world.

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