Should the Fed stick with the 2 percent inflation target or rethink it?
Past Event
Introduction & Why it's time to re-think the 2 percent target
Introduction & Why it's time to re-think the 2 percent target
The options: Keep it, tweak it, or replace it
What difference does a monetary framework make? And to whom?
Next steps: Learning from the Bank of Canada
There is debate (mainly among those familiar with monetary policy issues) about the wisdom of keeping or changing the 2 percent inflation target. This is likely to be a continuing conversation that’ll continue under the new Fed chair. Much of the discussion is from advocates of one or another alternative making their pitch.
On January 8, the Hutchins Center on Fiscal and Monetary Policy at Brookings brought advocates of several alternatives (including sticking with 2% target) together to present their case and to challenge the others. The discussants weighed in on whether and how the choice of a target might matter for the actual policy path and the results for the economy. Important aspects of the discussion focused on the effects of alternatives on the clarity of Fed communication and on setting expectations and on the process by which the legislature holds the Fed accountable for results. The debate was grounded in serious analysis, clarified some issues, created a baseline for what’s likely to be a continuing conversation and considered a process by which the Fed can address this important question.
Read John Taylor’s remarks about the event on his blog.
Agenda
Introduction
David Wessel
Director - The Hutchins Center on Fiscal and Monetary Policy
Senior Fellow - Economic Studies
Session Materials
Why it's time to re-think the 2 percent target
Lawrence H. Summers
Charles W. Eliot University Professor and President Emeritus - Harvard University
Session Materials
The options: Keep it, tweak it, or replace it
Olivier Blanchard
C. Fred Bergsten Senior Fellow - Peterson Institute for International Economics
Jeff Frankel
James W. Harpel Professor of Capital Formation and Growth - Harvard University
John C. Williams
President and CEO - Federal Reserve Bank of San Francisco
Rick Mishkin
Professor - Columbia University
Ben S. Bernanke
Distinguished Senior Fellow - Economic Studies - The Brookings Institution
Louise Sheiner
The Robert S. Kerr Senior Fellow - Economic Studies
Policy Director - The Hutchins Center on Fiscal and Monetary Policy
Session Materials
What difference does a monetary framework make? And to whom?
John Taylor
Mary and Robert Raymond Professor of Economics - Stanford University
Kristin J. Forbes
Jerome and Dorothy Lemelson Professor of Management, Professor of Global Economics and Management - MIT-Sloan School of Management
Peter Hooper
Managing Director, Chief Economist - Deutsche Bank Securities
Session Materials
Next steps: Learning from the Bank of Canada
John David Murray
Former Deputy Governor - Bank of Canada
Eric Rosengren
President - Federal Reserve Bank of Boston
Session Materials
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