The Fed´s mantra: “The effects of lower oil prices and higher exchange rate will dissipate and inflation will converge to target”.
And:
“There is some evidence that the deep recession had a long-lasting effect in depressing investment, research and development spending, and the start-up of new firms, and that these factors have, in turn, lowered productivity growth. With time, I expect this effect to ease in a stronger economy.”
Question: How will the economy become stronger if the Fed wants it kept weak?
How? By keeping NGDP depressed!
For the motivation, see “We´re almost there”.
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