Fed Policy and Future Inflation

From: Martin Feldstein <msfeldst_at_gmail.com>
Date: Tue, 4 Sep 2012 09:53:16 -0400

At the recent Jackson Hole meeting Ben Bernanke made the case for another
round of QE, noting the risks but concluding that they are quite
manageable. I am less sanguine about the risk of increased liquidity for
future inflation. My specific concern is the political constraint that
could be placed on future Fed policy by the high rate of long-term
unemployment.

I discuss this in my current Project Syndicate piece available at
www.nber.org/feldstein/projectsyndicateaugust2012.pdf

Marty
Received on Tue Sep 04 2012 - 09:53:16 EDT