Rhetoric aligned with theory: talking productively about interest rates
If the recession that began in March 2001 has ended, as many believe, it will be hard to oppose the sentiment that the U.S. economy has navigated some fairly treacherous waters with minimal damage. To many, no doubt, the 475 basis point reduction in the federal funds rate engineered by the FOMC will be one of the heroes of the recovery–expansion story. Should we not, then, re-evaluate the position this Bank has taken in the past—that policymakers should keep their eyes on long-term objectives rather than reacting to perceived, short-term gaps between output and its “potential”?
Volume (Year): (2001)
Issue (Month): ()
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