"Premise 1: The only coherent way of characterizing monetary policy as being either too "easy” or “tight” is relative to the policy stance expected to achieve the central bank’s goals.Premise 2: “Monetary policy can be highly effective in reviving a weak economy even if short-term interest rates are already near zero.” Premise 3: After mid-2008, and especially in early October, the expected growth in the price level and nominal GDP fell increasingly far below the Fed’s implicit target."
Links for 21st February, 2019
"Premise 1: The only coherent way of characterizing monetary policy as being either too "easy” or “tight” is relative to the policy stance expected to achieve the central bank’s goals.Premise 2: “Monetary policy can be highly effective in reviving a weak economy even if short-term interest rates are already near zero.” Premise 3: After mid-2008, and especially in early October, the expected growth in the price level and nominal GDP fell increasingly far below the Fed’s implicit target."