Inflation Thresholds and Policy-Rule Inertia: Some Simulation Results
Abstract: In August 2020, the Federal Open Market Committee approved a revised Statement on Longer-Run Goals and Monetary Policy Strategy (FOMC, 2020) and in the subsequent FOMC meetings, the Committee made material changes to its forward guidance to bring it in line with the new framework. Clarida (2021) characterizes the new framework as comprising a number of key features.
Part of Series: FEDS Notes
Publication Date: 2021-04-12