A simple and prudent approach to current monetary policy is to move the policy settings closer to normal levels now that the goals of policy have been attained, St. Louis Fed President James Bullard said during the Cato Institute's 33rd Annual Monetary Conference in Washington, D.C. However, with the topic of the conference being "Rethinking Monetary Policy," he also discussed the consequences of a situation in which the zero interest rate policy remains a persistent feature of the economy.
New economy - new policy rules?
The U.S. economy appears to have experienced a pronounced shift toward higher productivity over the last five years or so. We wish to understand the implications of such shifts for the structure of optimal monetary policy rules in simple dynamic economies. Accordingly, we begin with a standard economy in which a version of the Taylor rule constitutes the optimal monetary policy for a given inflation target and a given level of productivity. We augment this model with regime switching in productivity, and calculate the optimal monetary policy rule in the altered environment. We find that in ...
Time Consistency and Fed Policy : a presentation at New York Association for Business Economics, New York, N.Y., March 24, 2016
St. Louis Fed President James Bullard discussed whether the FOMC's decision earlier this month to leave the policy rate unchanged was an example of time-inconsistent policymaking, given that the state of the U.S. economy then was arguably consistent with the FOMC's Summary of Economic Projections (SEP) from December, which could have led some to believe an increase was warranted. During a presentation to the New York Association for Business Economics, he said that some key changes to the SEP in March were enough to justify a somewhat different policy stance than would otherwise have been ...
Will regulatory reform prevent future crises?
Delivered at the CFA Virginia Society, Richmond, Virginia.
Assessing the Risk of Yield Curve Inversion : a presentation at Regional Economic Briefing, Little Rock, Ark. December 1, 2017.
In Little Rock, Ark., St. Louis Fed President James Bullard talked about the possibility that the yield curve would invert, whereby short-term interest rates would surpass long-term interest rates, and how such an inversion could be avoided. In the past, an inverted yield curve has helped predict recessions.
The U.S. economic situation and recent monetary policy developments
Presented at the National Economists Club, Washington D.C. December 2, 2010.
Hawks, doves, bubbles, and inflation targets
April 16, 2012. "Hawks, Doves, Bubbles, and Inflation Targets" Presented at the George S. Eccles Distinguished Lecture, Jon M. Huntsman School of Business, Utah State University.
The Fed is not \\"missing on the dual mandate\\"
Inflation targeting in the USA
February 6, 2012. Speech. "Inflation Targeting in the USA." Delivered at the Union League Club of Chicago, Breakfast@65West, Chicago, Ill.