{"id":7654,"date":"2016-10-05T09:00:03","date_gmt":"2016-10-05T13:00:03","guid":{"rendered":"http:\/\/centerforfinancialstability.org\/wp\/?p=7654"},"modified":"2016-10-05T09:09:05","modified_gmt":"2016-10-05T13:09:05","slug":"coats-on-what-is-wrong-with-our-monetary-policy","status":"publish","type":"post","link":"https:\/\/centerforfinancialstability.org\/wp\/2016\/10\/05\/coats-on-what-is-wrong-with-our-monetary-policy\/","title":{"rendered":"Coats on &#8220;What is wrong with our monetary policy?&#8221;"},"content":{"rendered":"<p>Former Chief of the SDR Division at the IMF Warren Coats unpacks a statement by Senator Jeff Merkley that<\/p>\n<p>&#8220;The Fed should be using its economic expertise to highlight the long-term devastating impacts of failing to provide the opportunity for the skills needed for the economy of the future.&#8221; [1]<\/p>\n<p>Warren&#8217;s paper examines monetary management in the United States &#8211; since the Nixon shock of closing the gold window and launching wage and price controls &#8211; to research the statement above. He finds:<\/p>\n<ul>\n<li>No tradeoff exists between employment and inflation in the long run.<\/li>\n<li>Radical innovations in New Zealand sparked rules that ultimately fell short of expectations.<\/li>\n<li>NGDP targeting ignores the benefits of stable money.<\/li>\n<li>The return to a hard anchor for monetary policy &#8211; such as the SDR &#8211; is attractive.<\/li>\n<\/ul>\n<p>Although CFS is not promoting the idea of a newfound use for the SDR, monetary policy is in need of a rethink. Warren&#8217;s ideas are thoughtful and informative.<\/p>\n<p>To view the full paper:<br \/>\n<a href=\"http:\/\/centerforfinancialstability.org\/research\/Coats_CFS_100516.pdf\">http:\/\/centerforfinancialstability.org\/research\/Coats_CFS_100516.pdf<\/a><\/p>\n<p>As always, CFS welcomes opinion.<\/p>\n<p>[1] Ylan Q. Mui, <a href=\"https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2016\/08\/26\/liberals-fought-for-janet-yellen-to-lead-the-fed-now-they-hope-shes-more-more-ally-than-adversary\/\">https:\/\/www.washingtonpost.com\/news\/wonk\/wp\/2016\/08\/26\/liberals-fought-for-janet-yellen-to-lead-the-fed-now-they-hope-shes-more-more-ally-than-adversary\/<\/a> The Washington Post Aug. 27, 2016<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Former Chief of the SDR Division at the IMF Warren Coats unpacks a statement by Senator Jeff Merkley that &#8220;The Fed should be using its economic expertise to highlight the long-term devastating impacts of failing to provide the opportunity for &hellip; <a href=\"https:\/\/centerforfinancialstability.org\/wp\/2016\/10\/05\/coats-on-what-is-wrong-with-our-monetary-policy\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,37,5],"tags":[],"class_list":["post-7654","post","type-post","status-publish","format-standard","hentry","category-central-banking","category-extraordinary-monetary-policy","category-money"],"_links":{"self":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/7654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/comments?post=7654"}],"version-history":[{"count":5,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/7654\/revisions"}],"predecessor-version":[{"id":7659,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/posts\/7654\/revisions\/7659"}],"wp:attachment":[{"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/media?parent=7654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/categories?post=7654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/centerforfinancialstability.org\/wp\/wp-json\/wp\/v2\/tags?post=7654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}