Report Detail Summary

Central Bank Balance Sheet Expansions and the Organization of the Monetary System

May 20, 2014

One issue is whether the Janet Yellen Fed will adopt a Phillips Curve-based monetary policy. Based on her academic record and her recent statements, we tend to lean towards the view that the Phillips Curve will now gain additional prominence at the Fed. We are about to embark on an experiment where the Fed will attempt to use monetary policy to lower the unemployment rate.

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