Central banks are facing an erosion of their traditional ability to fight inflation single-mindedly, a critical challenge explored in this macroeconomic analysis. This work serves as a sequel to the authors' previous book, ‘The Great Demographic Reversal’, delving into how demographic shifts are fundamentally altering the landscape for monetary policy.

Manoj Pradhan and Charles Goodhart argue that increasingly ageing societies will cause a persistent and underappreciated deterioration in government fiscal positions, leading to rising real interest rates. The book examines potential offsets, such as AI and China's economic trajectory, concluding that the net outcome for monetary policy is challenging, potentially forcing a trade-off between near-term financial instability and future inflation.

• Examines the erosion of central banks' singular focus on fighting inflation.
• Argues that rising real interest rates stem from fiscal deterioration caused by aging societies.
• Analyzes the limited disinflationary potential of AI and China in the medium term.
• Concludes that monetary policy faces difficult choices in highly indebted economies.

• Binding: Paperback
• Language: English
• Publication Date: April 10, 2026
• Print Length: 296 pages
• ISBN 13: 979-8252503790
• Dimensions: 152 x 17 x 229mm (6 x 0.67 x 9 inches)
• Item Weight: 513 g
• Authors: Charles Goodhart, Manoj Pradhan

For economists, policymakers, and students of macroeconomics, this book provides a timely and sobering assessment of the challenges facing modern monetary governance.