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1/4
Fed's "Communication Problem" is essentially the "Inflation problem." Years of lower inflation is making them push towards Flexible Average Inflation Targetting (FAIT). https://twitter.com/RomanchukBrian/status/1309244657721839618
1/4
Fed's "Communication Problem" is essentially the "Inflation problem." Years of lower inflation is making them push towards Flexible Average Inflation Targetting (FAIT). https://twitter.com/RomanchukBrian/status/1309244657721839618
2/4
Neither is this irresponsible nor incredible.
The experiment of QE was done in aftermath of GFC to arrest deflationary tendencies in US. It worked. So experiments must be encouraged with changing times.
The credibility aspect is more interesting covered in next tweet.
Neither is this irresponsible nor incredible.
The experiment of QE was done in aftermath of GFC to arrest deflationary tendencies in US. It worked. So experiments must be encouraged with changing times.
The credibility aspect is more interesting covered in next tweet.
3/4
In fact, Fed is the only central bank which has demonstrated the credibility of it's monetary policy. To a large extent they achieved the objective, unlike ECB and BoJ
Fed is the only large central bank to raise rates and thereby created ammunition for this crisis.
In fact, Fed is the only central bank which has demonstrated the credibility of it's monetary policy. To a large extent they achieved the objective, unlike ECB and BoJ
Fed is the only large central bank to raise rates and thereby created ammunition for this crisis.
4/4
For Monetary Policy Hawks who compare current situation with that of 1970's, I have only one thing to say:
"Crude Oil remains an important driver of Inflation but it is not going to $200/bbl"
We have seen that Negative rates don't achieve the desired objectives.
==END==
For Monetary Policy Hawks who compare current situation with that of 1970's, I have only one thing to say:
"Crude Oil remains an important driver of Inflation but it is not going to $200/bbl"
We have seen that Negative rates don't achieve the desired objectives.
==END==
Cc:
Friends pls read the above thread
@teasri @donnelly_brent @ozanktarman @Fongern_FX @VPatelFX @anilvohra69 @AndreasSteno @Blissful_Man @ananthng @jsmian @latha_venkatesh @VamsiTatavarthy @Revhappy2 @aRishisays @dhanuka_saloni @Macr0_Maniac @realKunalAShah @RaoulGMI
Friends pls read the above thread
@teasri @donnelly_brent @ozanktarman @Fongern_FX @VPatelFX @anilvohra69 @AndreasSteno @Blissful_Man @ananthng @jsmian @latha_venkatesh @VamsiTatavarthy @Revhappy2 @aRishisays @dhanuka_saloni @Macr0_Maniac @realKunalAShah @RaoulGMI
