a higher inflation t arget beat negative interest rates
resume:
Attached a post of Ben Bernanke Federal Reserve Chairman from 2006 to
2014, Make a new discussion in the blog about new monetary policy
framework, said that we should be agnostic about whether one or both of
them will form part of the Fed's policy framework. Negative interest rates
are not "significantly inferior" to raising inflation targets, it is in some
ways even better. Both may give the Fed more room to fight the
recession. Negative interest rates are easy to implement and can only be
used if necessary. Negative interest rates and inflation targets are
politically unpopular and may lead to a fall in Fed policy support. The
inflation target does not enhance the Fed's ability to drive real interest
rates down unless the public's inflation expectations change. The Fed and
other central banks have good reasons to consider adjusting their policy
frameworks because they can not guarantee that fiscal policy makers will
assume part of the responsibility for stabilizing the economy during the
next recession
Grupo, xue deng
Yanyue cao
