Tuesday, September 13, 2016
Ben Bernanke on Fed policy
A clear and cogent column by Professor B, per expectations. Ben thinks negative policy rates ought to be taken more seriously here, but the bottom line seems to be that we couldn't push the nominal rate much below -0.5%. That's a pretty limited scope for monetary policy, but given the apparent difficulty and uncertainty of managing inflation expectations, a viable option. Et tu, Janet Y?