5min chapter

Forward Guidance cover image

Joseph Wang & William White: Mammoth Interest Rate Hikes Are Causing Trouble In Sovereign Debt

Forward Guidance

CHAPTER

The Fed's Forecast of Interest Rates Was Wrong, and It Always Goes Back to 2%

Former Bank of Canada chief economist Jack Boulden says central banks and academia still are stuck on an old framework. He says it's very difficult to get people to change, but there are some signs that the profession is starting to open up. But if you keep hammering away at these errors, we'll wind up with a really big crisis - which might otherwise have been avoided.

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