Boston Fed economists call for monetary policy evaluations
Effective lower bound and reduced ability to stabilise the economy warrant a rethink of the monetary policy framework, economists say
Boston Fed president Eric Rosengren and three Boston Fed economists say the framework for evaluating monetary policy in the US can improve.
In a Brookings Institution paper published on September 14, the economists argue the “dynamic” monetary history of the US, including the Great Depression, Great Inflation and Great Recession, suggest that the existing evaluation framework is not optimal. One key failing in these cases “has been that the Fed did not adequately address an emerging problem”
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