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Hard Times, Easy Money? Countercyclical Stabilization in an Uncertain Economy

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Robert E. Carpenter

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Abstract

The tools of countercyclical monetary policy have been brought fully to bear on a potentially severe recession. This note argues, however, that such a policy is less effective in times such as these--that is, when uncertainty is especially high--and so is likely to be particularly ineffective in combating the current economic slowdown.

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Paper provided by Levy Economics Institute, The in its series Economics Policy Note Archive with number 01-9.

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Handle: RePEc:lev:levypn:01-9

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  1. Dimitri B. Papadimitriou & L. Randall Wray, . "Are We All Keynesians (Again)?," Economics Policy Note Archive 01-10, Levy Economics Institute, The. [Downloadable!]
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