First, as I read the FOMC statement, it was painfully obvious that the impact of the Michael Woodford piece found willing adherents in the bowels of the Board of Governors of the Federal Reserve. The FED’s language: “IF THE OUTLOOK FOR THE LABOR MARKET DOES NOT IMPROVE SUBSTANTIALLY, the committee will continue its purchases of agency mortgage-backed securities …” Further, in a direct BOW to Woodford: “The committee expects that a HIGHLY ACCOMMODATIVE STANCE OF MONETARY POLICY WILL REMAIN APPROPRIATE FOR A CONSIDERABLE TIME AFTER THE ECONOMIC RECOVERY STRENGTHENS.”
Posts Tagged ‘NGDP’
Notes From Underground: FOR CHAIRMAN BERNANKE — WHEN DID MONETARY POLICY BECOME THE LABORATORY OF ACADEMIC THEORISTS?
September 13, 2012Tags:asset buying, Bernanke, BOJ, Draghi, ECB, Fed, fiscal cliff, FOMC, MBS, Michael Woodford, NGDP, output gaps, QE, transmission mechanism, U.S. Dollar, U.S. yield curve, Yen
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