".. does it make sense to actively seek a higher
inflation rate in order to achieve a slightly
increased pace of reduction in the unemployment rate? "
nicly framed that ...no
"The view of the committee is that that would be very,
reckless."
note he hides in the WEs here
"the Federal Reserve, has spent 30 years
building up credibility for low and stable inflation "
" which has proved extremely valuable,"
ben have u an example ?
"we've been able to take strong accommodative
actions in the last four or five years to support the
economy without leading to a destabilization of inflation."
" To risk that asset, for, what I think would be
quite tentative and perhaps doubtful gains, on the real side
would be an unwise thing to do."
"perhaps doubtful" "real gains"
this sez
despite talk of liquidity trap
using creative tools at the ZERP
the fed can impact up or down
the rate of inflation of product prices
sure he can he just said so ...
but the fed can not impact the rate of real spending
simply by increasing the announced
targeted rate of inflation
over some longer term (two to five year ?)
or even if you used your creative vpowers
to push up inflation to an annual rate of 5% ben ?
oh weary weary inquirer
so much is left unsaid here
