San Francisco Fed chief calls for policy target re-think
Central banks should consider nominal GDP targeting or raised inflation targets, Williams says
The president of the Federal Reserve Bank of San Francisco has called for central bankers to consider major changes to the goals of monetary policy if long-term interest rates remain persistently low.
John Williams also urged other policy-makers to think about radically changing their tools, in an ‘Economic letter' published by the San Francisco Fed on August 15.
Natural interest rates are very low and appear "poised to stay that way", Williams argued. He referred to a research paper he had
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