What can Eeyore and Tigger tell us about the current state of monetary policy? A lot. At least that’s the argument that Betsey Stevenson and I make in our new column for Bloomberg View. The Fed is now engaged in the game of “forward guidance”—they’ve announced that they anticipate keeping interest rates at zero, until late 2014—and hope that it will shape the recovery.
Betsey Stephenson and Justin Wolfers take us on a journey to Hundred Acre Wood: Eeyore and Tigger have become central bankers. The wood's economy is suffering the repercussions of a recent honey binge. Both Eeyore and Tigger want to... Read Post
Monetary policy. That's the massive issue on which we don't really know the views of Larry Summers, who is one of the leading candidates to replace Ben Bernanke as Chairman of the Federal Reserve. And since monetary policy is pretty... Read Post
Just out: Text of a new Bernanke speech with the title "Five Questions about the Federal Reserve and Monetary Policy.": Via Bloomberg is this headline: BERNANKE SAYS FED TO KEEP RATES LOW AFTER ECONOMY STRENGTHENS. Here's the text: ... Read Post