Randal Quarles on Inflation, Balance Sheet Reduction, Financial Stability, and the Future of the Fed
Macro Musings with David Beckworth
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Tapering the Balance Sheet
The lesson of the taper tantrum under benanke was that you've got to do that gradually in order to avoid disrupting markets. I think it's now clear that in circumstances such as obtained in the fall, where you had infilation printing at such a high level, on employment that had fallen significantly below what we thought was an inflationary level. Think that last fall would have been a time for the fet to slip policy down onto the right glide path by beginning to raise intestrates even before the balancing taper was complete. You know, i'm a pilot, and i would often bore the fo c with my analogies to flying.
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