Interest Rates are a Horrible Guide to the Stance of Monetary Policy

Here’s Paul Krugman: But in the world we’ve been living in this past quarter-century or more, inflation expectations haven’t moved much, and nominal interest rates have, in practice, been a pretty good guide to the stance of monetary policy.” Throughout the post, Krugman seems to imply that nominal interest rates are a good guide to [...] View the full post at: Interest Rates are a Horrible Guide to the Stance of Monetary Policy Related posts: Fed Hoenig’s View on Interest Rates and Inflation Gradualism: The Worst Possible Approach to Monetary Policy in a World of Uncertainty What’s behind Recent Changes in Long-Term Interest Rates?