Monday, July 7, 2014

In a nut shell : Keynesian hicks- ite epigone credo

" The Keynesian view of monetary policy is that the central bank should, if it can, set interest rates at a level that produces full employment." ........" Sometimes it can’t: even at a zero rate the economy remains depressed, so you need fiscal policy. But in normal times the Fed and its counterparts should be aiming at the full-employment interest rate." PKruggles