Patrick Horan and David Beckworth on *The Fate of FAIT* and the Future of the Fed’s Monetary Framework
Macro Musings with David Beckworth
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The Sten GDP Gap Rule and the Taylor Rule
Kerry: One argument for negative interest rates would be that to implement this kind of framework, the interest rate that it prescribes does get negative at times. So in 2008, 2009, and again in 2020, this is also true of the traditional Taylor rule. Kerry: If you truly want to follow the rule, you have to go negative unless you have some other means of setting policy like a base rule or a futures market rule. But again, we're not doing that right now.
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