Fed policy has ‘little impact’ on labour market, paper says
Paper argues Fed will struggle to return employment to pre-crisis level
The Federal Reserve's easy monetary policy since the financial crisis has only had a "small impact" on the level of employment relative to the population, and there is little it can do to address this, according to an economic policy paper published by the Federal Reserve Bank of Minneapolis.
Ellen McGrattan, in Monetary policy and employment, says monetary theories for both conventional and unconventional policies show "Fed interventions have little impact on the labour market".
"Proponents of
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