Listen: Federal Reserve, Browns And Seven Years discussed on Overnight re-air of day's programming
"Make monetary policy. More effective. It's zero interest rates you mentioned a state contingent price level targeting or temporary price level targeting. Some examples of that. But the Federal Reserve is doing and review currently of its tools and its framework. Some interesting discussions in that context about whether the current inflation targeting framework needs modification or would it be ways of making monetary policy more effective at zero? But I think overall the experience suggests to me that that while the Browns a real constraint and makes it harder to manage monetary policy. There are some tools that can be used in that circumstance to to get additional accommodation. Well, I agree. I think the tools were affective should remain in the tool kit. And culturally can be strengthened. And I think it's very constructive that the fed is going to undertake a review, I think one of the things that struck me looking back is that is laid is twenty twelve I believe he's still had long term interest rates that were around three and a half percent. And in a way that reflected. It's the public's view that he'd be short episode that short rates would go back up more quickly. I mean, it was seven years that they stated zero and I think we learn things from four we'd guidance using him after the financial crisis that we might be able in a future episode to communicate more quickly the likelihood did reach we'd."