The Godley–Tobin Memorial Lecture

J. Bradford DeLong

Review of Keynesian Economics, 2026, vol. 14, issue 1, 1-14

Abstract: In the post-2020 aftermath of the COVID plague depression, the Powell Fed appropriately balances risks ex ante, and compared to counterfactual alternatives, the ex post outcomes are good. Historically, most inflation episodes ebb without adaptive spirals; the 2020s follow that pattern; thus, the Fed’s moving late but then moving fast to the Wicksellian neutral rate is a successful policy. Powell’s FOMC makes prudent, data‑dependent judgments under our immense uncertainty about the state of the economy and our extremely limited understanding of how the macroeconomy actually works.

Keywords: Stabilization policy; Wicksell; Neutral rate of interest; Transitory inflation; Zero lower bound; Powell FOMC (search for similar items in EconPapers)
JEL-codes: B22 B30 E31 E52 E58 E61 E65 N10 (search for similar items in EconPapers)
Date: 2026
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