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Thursday, September 03, 2015

Patience

Carlos Garriga, Finn Kydland, and Roman Sustek, say (based upon their work "The Costs of Interest Rate Liftoff for Homeowners":

If the purpose of the liftoff is to “normalize” nominal interest rates without derailing the recovery, the Federal Reserve Bank and the Bank of England should wait until the economies show convincingly signs of inflation taking off.

    Posted by on Thursday, September 3, 2015 at 09:08 AM in Environment, Monetary Policy | Permalink  Comments (29)


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