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Tuesday, August 15, 2017

Fed Shouldn't View Productivity as an Exogenous Factor

Tim Duy:

Fed Shouldn't View Productivity as an Exogenous Factor: The Federal Reserve has an opportunity to test a hypothesis critical to the health of the U.S. economy: Can persistently loose monetary policy boost the pace of productivity growth? Sadly, for now, an adherence to a strict Phillips curve framework for the economy and fear of financial instability will prevent the Fed from venturing down this path. ...[Continued at Bloomberg Prophets]...

    Posted by on Tuesday, August 15, 2017 at 12:03 PM in Economics, Monetary Policy | Permalink  Comments (24)


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