Perspectives on monetary policy and the framework review
Name
11369_2025_400_ReferencePDF.pdf
Size
524.37 KB
Format
Adobe PDF
Checksum (MD5)
c014ff010ed20e9d1469613648d0d778
Author(s)
Evans, Charles
Sack, Brian
Forbes, Kristin
Date Issued
May 1, 2025
Journal
Business Economics
Publisher
Palgrave Macmillan UK
Citation
Evans, C., Sack, B. & Forbes, K. Perspectives on monetary policy and the framework review. Bus Econ 60, 65–76 (2025).
Version
Final published version
Abstract
A panel discussed potential desirable changes in the Federal Reserve’s policy framework in light of recent experience. Issues raised included communication about when the effective lower bound is reached, the relative merits of flexible average inflation targeting and flexible inflation targeting, and the use of QE and QT policy. Emphasis was placed on the need to carefully consider the weights placed on the inflation and employment mandates, especially in light of supply shocks, the need to carefully distinguish between balance sheet actions designed to stabilize markets and those used as stimulus in an effective lower bound environment, and the need to recognize the price level impact of inflation running higher than target.
MIT Department
Sloan School of Management
Terms of Use
Creative Commons Attribution-Noncommercial-ShareAlike
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1057/s11369-025-00400-x
