Monthly Archives: May 2011

“Hi Mom”: Ben Goes Inflation Targeting

I know. This is a VERY late post. I am going to write a few remarks about something that happened 2 1/2 weeks ago. Old news. Nevertheless, big events deserve a comment even after a while. In the April 27 video above, Federal Reserve chairman Ben Bernanke is seen in a press conference following the FOMC’s decision to keep the Fed funds rate unchanged within its 0-0.25% zone. What makes this of significance is that it, as I see it, marks the moment where the United States officially enters the group of inflation-targeting countries. He explicitly mentions two percent (or a “bit less”) as the average inflation rate consistent with … Continue reading

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