The Folly of Federal Reserve Stabilization Policy: Part I 1948-1985
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The Federal Reserve Board is responsible for formulating macro stabilization policy. More specifically, the Federal Reserve Board seeks tradeoffs between inflation and unemployment rates. Fed officials need meaningful data to formulate useful policies. Data on the unemployment rate that coincides with zero inflation provides a starting point for policy formulation. Fed officials also need data on the rate at which inflation reduces unemployment rates. Finally, data on any association between inflation and unemployment rates enables Fed officials to estimate the probability of policy success. What do economists know about all of this?
The Folly of Federal Reserve Stabilization Policy: Part I 1948-1985
The Folly of Federal Reserve Stabilization…
The Folly of Federal Reserve Stabilization Policy: Part I 1948-1985
The Federal Reserve Board is responsible for formulating macro stabilization policy. More specifically, the Federal Reserve Board seeks tradeoffs between inflation and unemployment rates. Fed officials need meaningful data to formulate useful policies. Data on the unemployment rate that coincides with zero inflation provides a starting point for policy formulation. Fed officials also need data on the rate at which inflation reduces unemployment rates. Finally, data on any association between inflation and unemployment rates enables Fed officials to estimate the probability of policy success. What do economists know about all of this?