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Permazero

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  • James Bullard

Abstract

A simple and prudent approach to current monetary policy is to move the policy settings closer to normal levels now that the goals of policy have been attained, St. Louis Fed President James Bullard said during the Cato Institute's 33rd Annual Monetary Conference in Washington, D.C. However, with the topic of the conference being \"Rethinking Monetary Policy,\" he also discussed the consequences of a situation in which the zero interest rate policy remains a persistent feature of the economy.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • James Bullard, 2016. "Permazero," Cato Journal, Cato Journal, Cato Institute, vol. 36(2), pages 415-429, Spring/Su.
    • Handle: RePEc:cto:journl:v:36:y:2016:i:2:p:415-429
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    File URL: http://object.cato.org/sites/cato.org/files/serials/files/cato-journal/2016/5/cj-v36n2-14.pdf
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    Other versions of this item:

    • James B. Bullard, 2016. "Permazero," Review, Federal Reserve Bank of St. Louis, vol. 98(2).
    • James B. Bullard, 2015. "Permazero," Speech 256, Federal Reserve Bank of St. Louis.

    References listed on IDEAS

    as
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    2. Sargent, Thomas J. & Vilmunen, Jouko (ed.), 2013. "Macroeconomics at the Service of Public Policy," OUP Catalogue, Oxford University Press, number 9780199666126.
    3. Benhabib, Jess & Evans, George W. & Honkapohja, Seppo, 2014. "Liquidity traps and expectation dynamics: Fiscal stimulus or fiscal austerity?," Journal of Economic Dynamics and Control, Elsevier, vol. 45(C), pages 220-238.
    4. Ricardo J Caballero & Emmanuel Farhi, 2018. "The Safety Trap," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(1), pages 223-274.
    5. S Borağan Aruoba & Pablo Cuba-Borda & Frank Schorfheide, 2018. "Macroeconomic Dynamics Near the ZLB: A Tale of Two Countries," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(1), pages 87-118.
    6. Benhabib, Jess & Evans, George W. & Honkapohja, Seppo, 2014. "Liquidity traps and expectation dynamics: Fiscal stimulus or fiscal austerity?," Journal of Economic Dynamics and Control, Elsevier, vol. 45(C), pages 220-238.
    7. Mariana García-Schmidt & Michael Woodford, 2019. "Are Low Interest Rates Deflationary? A Paradox of Perfect-Foresight Analysis," American Economic Review, American Economic Association, vol. 109(1), pages 86-120, January.
    8. Andolfatto, David & Williamson, Stephen, 2015. "Scarcity of safe assets, inflation, and the policy trap," Journal of Monetary Economics, Elsevier, vol. 73(C), pages 70-92.
    9. Eusepi, Stefano, 2007. "Learnability and monetary policy: A global perspective," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1115-1131, May.
    10. Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
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    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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