Anatomy of a policy error
There has been a notable pick up today in warnings that an aggressive Fed will cause serious damage to the US #economy and beyond
It is right to be concerned. But the answer is not for the Fed to allow #inflation to cause more pain to so many
As I’ve 1/2
There has been a notable pick up today in warnings that an aggressive Fed will cause serious damage to the US #economy and beyond
It is right to be concerned. But the answer is not for the Fed to allow #inflation to cause more pain to so many
As I’ve 1/2
…detailed before, we find ourselves quite far from the world of policy “first best”—a consequence of the #Fed having been so late in responding
Tragically, especially as this was avoidable, the second- and third-best policy approaches come with side effects and collateral damage
Tragically, especially as this was avoidable, the second- and third-best policy approaches come with side effects and collateral damage
Protecting the most vulnerable segments of society becomes even more important, as does using this moment to enhance productivity, growth and future financial stability. Rather than hope for an immaculate soft landing, it’s crucial to minimize the damage from the policy mistake.
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