“I think the December 2008 FOMC decision unwittingly committed the U.S. to an extremely long period at the zero lower bound similar to the situation in Japan, with unknown consequences for the macroeconomy,” Bullard said. Pointing to the Bank of Japan’s long struggle against deflation and slow growth, Bullard said he has seen “no evidence” that a faster economic recovery results from quickly lowering interest rates to near zero.
FOMC’s Bullard coming around to what I posted in 2008?
November 22, 2013 at 07:44 AM EST
“I think the December 2008 FOMC decision unwittingly committed the U.S. to an extremely long period at the zero lower bound similar to the situation in Japan, with unknown consequences for the macroeconomy,” Bullard said. Pointing to the Bank of Japan’s long struggle against deflation and slow growth, Bullard said he has seen “no evidence” [...]
