The Recovery The Fed Wants
the FOMC meekly “anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.” If the unemployment rate is not currently at a level consistent with the mandate and is also not converging rapidly toward a level consistent with the mandate, then in my view the FOMC ought to do something new and dramatic in order to fulfill its mandate. Instead, the FOMC is standing pat. They think 9.1 percent unemployment and moderate growth is fine and they don’t intend to do anything about it.
Life in the Liquidity Trap
The Wall Street Journal is now admitting that we are in a liquidity trap. This is something the Keynesian have been saying for the past two and a half years. At that same time; the Journal Op-Ed pages have been warning about inflation and interest rates while hyping gold.
The videos from the panels at the Roosevelt Institute’s Future of the Federal Reserve Event are now online. There’s a video for introductory remarks by Joe Stiglitz and then videos for the full-length panels as well as videos broken down by speakers.
From Future of the Federal Reserve Panel Videos Now Online. | Rortybomb