Antonio Fatás on Hysteresis and the Business Cycle
Macro Musings with David Beckworth
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The Uncertainty of Level Targeting
I think it's fair to say it goes both ways. Not just on the side of those who want to see if reverse hysteresis has merit. This is a form of level targeting what we're trying here in the United States. It's makeup policy. Any kind of level targeting in my book is an improvement over what we've had because it empowers us to do rapid makeup policy. Along the way, we get to test Hysteresis. I think these ideas go hand in hand and I think the average inflation target is a watered down version of a price level target that's going to allow us to try it out. We'll get questions answered about hysteres
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