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How inertial is monetary policy? implications for the fed’s exit strategy

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  • Gorodnichenko, Y
  • Coibion, O

Abstract

As the US economy recovers in fits and starts, attention is turning to exit strategies.How will the Fed unwind its quantitative easing? This column presents evidence ofsubstantial levels of policy inertia in monetary policy. It says that we should not expectrapid policy changes in the near future – barring clear signs of economic distress.

Suggested Citation

  • Gorodnichenko, Y & Coibion, O, 2016. "How inertial is monetary policy? implications for the fed’s exit strategy," Department of Economics, Working Paper Series qt2qc6f09b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt2qc6f09b
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