EconPapers    
Economics at your fingertips  
 

The Federal Reserve's Mandate: Long Run

Thomas M Hoenig

Business Economics, 2011, vol. 46, issue 1, 13-16

Abstract: Given the slow recovery of the U.S. economy, quantitative easing of monetary policy in the form of U.S. Federal Reserve asset purchases has been attractive. However, it is not clear that the current and likely future economic environment warrants this policy, given its long-term risks. This paper outlines these risks and makes the case for a return to conventional policy by allowing currently held assets to roll off the Federal Reserve's balance sheet as they reach maturity and by resuming more conventional monetary policy. This is not a quick fix, but it is less risky than current policy in achieving the Federal Reserve's long-run dual mandate of price stability and maximum employment.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.palgrave-journals.com/be/journal/v46/n1/pdf/be201036a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/be/journal/v46/n1/full/be201036a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:buseco:v:46:y:2011:i:1:p:13-16

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11369

Access Statistics for this article

Business Economics is currently edited by Charles Steindel

More articles in Business Economics from Palgrave Macmillan, National Association for Business Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-19
Handle: RePEc:pal:buseco:v:46:y:2011:i:1:p:13-16