Fear of liftoff: Uncertainty, rules and discreation in monetary policy normalization

Research, Preprint OPEN
Orphanides, Athanasios;
  • Publisher: Frankfurt a. M.: Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
  • Subject: E61 | E52 | discretion | policy rules | E32 | liftoff | E58 | Federal Reserve,liftoff,discretion,policy rules,policy normalization | policy normalization | Federal Reserve
    • jel: jel:E32 | jel:E52 | jel:E58 | jel:E61
      ddc: ddc:330

The Federal Reserve's muddled mandate to attain simultaneously the incompatible goals of maximum employment and price stability invites short-term-oriented discretionary policymaking inconsistent with the systematic approach needed for monetary policy to contribute best... View more
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