Inflation Expectations, interest on reserves, interest rate targeting, natural rate of interest, QE

Having considered the Fed's pre-crisis approach to monetary control, with its emphasis on interest-rate targets reached with the help of open-market operations, we must now come to grips with the quite different methods it has been employing since, and how the switch to them came about. The…

Federal Reserve, Cato Journal, The Fed, behavioral economics, inflation targeting, zero lower bound, balance sheet, normalization

The fall 2016 issue of the Cato Journal is now available. Along with articles on free speech, climate change, and the peculiar business of politics, the latest edition offers a full line up on pressing issues in the current discourse on monetary policy. Among them are pieces critiquing calls to raise the Fed's inflation target, the Fed's…

titanic, ffr, FOMC, monetary control, Open Market Operations, SOMA, fed funds rate

It's high time that I got 'round to the subject of "monetary control," meaning the various procedures and devices  the Fed and other central banks employ in their attempts to regulate the overall availability of liquid assets, and through it the general course of spending, prices, and…