Fed's Bullard Throws Cold Water: Low Interest for 'Extended Period' Is a Sign of Failure

Niklas Blanchard submits:

James Bullard:

Again, the data in this Figure do not mix at all— it’s boxes on the right [US] and circles on the left [Japan]. But the most recent observation for the U.S., the solid box labelled “May 2010,”is about as close as the U.S. has been in recent times to the low nominal interest rate steady state. It is below the rate at which policy turns passive in the diagram. In addition, the FOMC has pledged to keep the policy rate low for an

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