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When transaction costs decrease, trade increases. And while inflation has indeed edged up in recent months, it remains below target: And I would argue that much of the rise in inflation was attributable to January's gain: Fischer also undercuts the hawks' argument that preemptive hikes are necessary because without them the Fed will fall behind the curve: But since monetary policy is only modestly accommodative, there appears little risk of falling behind the curve in the near future, and gradual increases in the federal funds rate will likely be sufficient to get monetary policy to a neutral stance over the next few years.

Pages: 316

Publisher: BiblioLife (September 22, 2009)

ISBN: 1113789735

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