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Forward Guidance: Theory versus Reality
Teaser: Mainstream monetary economics posits that the Federal Reserve influences economic activity by shaping expectations about the future. According to theory, when the Fed provides “forward...
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The Dangers of Data-Dependent Monetary Policy
Teaser: There are some genuine risks to policies that place too much emphasis on each and every piece of incoming data, risks that Fed policymakers should recognize when following their data-driven...
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The Fed's Liftoff: Delayed Again!
All year long, Federal Reserve policymakers have trumpeted plans for “liftoff,” the time when they finally increase their target for the federal funds rate above the range between zero and 25 basis...
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Fed Needs to Pause
Teaser: From the perspective of the Phillips Curve, whether monetary policy should be eased, tightened, or left unchanged can be gauged by the size of the gap between the reported rate of unemployment...
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