John Roberts on Macroeconomic Modeling at the Fed, Makeup Policy, and the Future of FAIT
Macro Musings with David Beckworth
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The Feds New Framework
The Feds New Framework fate is a form of a template for temporary price level targets. In the summer of 2020, monetary policy was very loose and the federal funds rate was at zero. They said that they would keep interest rates above zero until the unemployment rate reached their estimate of maximum employment. That's an element of average inflation targeting. It turns out by the middle of 2021, the shortfall in inflation had already been made up,. not just it forecast to be made up, but it had already being made up.
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