…than $2.60 was not questioned. An arbitrary target Even more glaring is that Smialek never once acknowledged, in the podcast or the follow-up article, that the 2% target is largely…

by Linda Beale Remember When the IRS Targeted Liberals? Salon’s Alex Seitz-Wald has a story that provides additional context on the difficulty the IRS has in determining appropriate filters for…

…effects of massive asset purchases separately. Here I will pretend that the only thing the FOMC does is target the federal funds rate, so forward guidance means statements about what…

…Wren-Lewis discussed changes in Central bank independence and explicit or implicit inflation targets. When claiming one has evidence, one really can’t use the word “implicit.” Explicit inflation targets are observable…

…monetary policy will eventually cause deflation. This is very odd. My honest opinion is that he wants to argue for a higher target federal funds rate and he’s decided to…

…intended target level” mean? The US Fed would peg the Fed rate at 4% or so, which would imply a 2% inflation target with a 2% natural real rate of…

…1.6%, which is below their target of 3.5%. There is more to that story, but can the Fisher Effect help us understand what is going on there? This post will…

…been many calls for the Fed to raise its target interest rate, the Fed has made it clear that it intends to keep its target interest rate abnormally low even…

…about the Fed’s target inflation rate are modelled as time varying (an AR1). Since the target inflation rate is very important to firms whick look long into the future, it…

…that I will overlay actual data to below… (link to previous post) The yellow star represents the Long-run natural target for normalized monetary policy at full employment… with a 2%…