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Fed Vice Chairman Kohn on Monetary Policy
Calculated Risk — This speech is a review of an academic paper (and a bit wonkish) ... here are some excerpts on two key topics: 1) how well the Fed followed the precepts of Walter Bagehot, and 2) if the Fed should target a higher inflation rate in a liquidity trap. From Federal Reserve Vice Chairman Donald Kohn: Comments on "Interpreting the Unconventional U.S. Monetary Policy of 2007-2009" ... In designing our liquidity facilities we were guided by the time-tested precepts derived from the work of Walter Bagehot. Those precepts hold that central banks can and should ...

links for 2009-09-14
J. Bradford DeLong's Grasping Reality with All Eight Tentacles — ... Paul Krugman on Justin Fox, 'The Myth of the Rational Market' Don Kohn, Comments on "Interpreting the Unconventional U.S. Monetary Policy of 2007-2009" ...