In some previous posts, I've taken Federal Reserve officials, including former New York Fed President William Dudley, to task for continuing to insist that the Fed's post-2008 "floor" operating system is a "simple" means for keeping overnight interest rates on target. Whatever the floor system's merits may…
Back in the spring of 2018, yours truly responded at length to a speech then New York Fed President Bill Dudley gave, defending the Fed's "floor" system of monetary control. In that speech, Dudley claimed that "the case for retaining the current floor system is very compelling."…
Regular Alt-M readers are no doubt looking forward to the FOMC's announcement next Wednesday. But I doubt they'll be sitting at the edges of their seats between now and then, much less biting their fingernails. Markets have, after all, been anticipating a modest Fed cut ever since…
Among many other advantages it enjoys when it comes to influencing the course of monetary reform, the Fed has that of being able to shift the constraints that determine whether a proposed reform is or isn't possible. If existing constraints don't stand in the way of some…
In the book I advertised in my last post, I argue that the Fed's decision to switch to a "floor"-type operating system "deepened and prolonged the Great Recession." Yet the Fed is only one of several central banks that have adopted floor systems for monetary control during…