Central banks’mission: See no evil

Central bankers are breathing a little easier. Financial markets, which were in a near panic last week, seem to be operating smoothly. But the monetary authorities are in the position of a driver of a car with bad brakes who has managed to avoid a crash. A faulty definition of inflation nearly allowed the financial system to careen out of control. In the future, the bankers should look at trends in asset price, not just consumer prices. Monday’s news is certainly good. The European Central Bank ...