How Monetary Policy Got Behind the Curve—and How to Get Back

Overview

Is the Federal Reserve on the right track? How Monetary Policy Got Behind the Curve—and How to Get Back assembles experts to dissect the Fed's recent policy decisions and propose solutions for navigating today's economic turmoil.

Explore the debate surrounding inflation, interest rates, and the Fed's role in the COVID-19 recovery. This volume offers diverse perspectives on:

• The fiscal shock of the COVID pandemic
• The value of rules vs. discretion in setting Fed policy
• Lessons from history's federal expenditure spikes
• Strategies for disinflation

For economists, policy makers, and anyone seeking clarity on the future of US monetary policy, this is a crucial read.

Reviews

"An invaluable guide to understanding and resolving the current surge in inflation."

—MERVYN KING, former governor, Bank of England

"This timely conference volume encompasses a broad examination of current key monetary policy challenges. Experts provide insights from differing perspectives about the Fed's belated move away from the zero lower bound, and about how the Fed can again reach its inflation target. Contributors include both current and former Fed officials."

—JOHN LIPSKY, senior fellow, Foreign Policy Institute, School of Advanced International Studies, Johns Hopkins University, and former first deputy managing director, International Monetary Fund

"This timely and substantive volume is simply a must-read for anyone interested in the way forward for US monetary policy. The volume draws on the insights of current and former Fed officials as well as the expertise and insights offered by a who's who of academic scholars and financial market participants. The essays are uniformly rigorous and accessible."

—RICHARD CLARIDA, C. Lowell Harriss Professor of Economics and International Affairs, Columbia University

Author Biography

Michael D. Bordo is a visiting fellow at the Hoover Institution, and a Board of Governors Professor of Economics and director of the Center for Monetary and Financial History at Rutgers University.

John B. Taylor is a senior fellow at the Hoover Institution, and the Mary and Robert Raymond Professor of Economics and director of the Introductory Economics Center at Stanford University.

John H. Cochrane is a senior fellow at the Hoover Institution, a research associate of the National Bureau of Economic Research, and an adjunct scholar of the Cato Institute.