Threat of Inflation Hamstrings Central Banks

The world's central banks seem to be in a classic dilemma, brought into focus by unsettled world reaction to the Federal Reserve's decision Wednesday to hold short-term interest rates constant: If central banks raise interest rates, they may cripple economic growth threatened by inflation; if they don't raise rates, inflation might spiral out of control. See "Inflation Menace Has Echoes of Volcker's Days."