I believe bright high school students would provide a better discussion on monetary policy!

In the FOMC Minutes we read:

Participants expressed a range of views about how they would assess the outlook for inflation and when they might deem it appropriate to begin removing policy accommodation. It was noted that there were no simple criteria for such a judgment, and, in particular, that, in a context of progress toward maximum employment and reasonable confidence that inflation will move back to 2 percent over the medium term, the normalization process could be initiated prior to seeing increases in core price inflation or wage inflation. Further improvement in the labor market, a stabilization of energy prices, and a leveling out of the foreign exchange value of the dollar were all seen as helpful in establishing confidence that inflation would turn up.

Reasoning from two price changes and one quantity change! No mention at all of something that could be remotely called “monetary policy”!

If we go there, we´ll see that as things stand regarding NGDP growth and broad money growth, inflation will have a hard time “turning up”!

FOMC Minutes

Note: By “bright high school students” I´m thinking Evan Soltas and Yichuan Wang 3 years ago


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.