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The Policy Rule Debate: A Simpler Solution To Foreward Guidance

Monday, March 13, 2017 3:49
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(Before It's News)

from the St Louis Fed

– this post authored by James Bullard

There has been growing public debate over how the Federal Reserve should conduct and communicate monetary policy. Some recent proposals, for instance, would require the Fed to specify a monetary policy rule that it would follow in adjusting the key policy rate (i.e., the federal funds rate target) and for the Fed to explain any deviations from that rule.

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