Faculty News

In an interview, Professor Kim Schoenholtz discusses Fed policy options in an era of low inflation and low growth

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Excerpt from the Financial Times -- "The big picture is that policymakers are aware we're in an era of low inflation and low growth. And that means that the neutral real interest rate, the equilibrium real interest rate, is very low. Maybe less than 1%. And that means that when we get to the next recession, it's very likely that interest rates are going to fall back to zero again in nominal terms. And they're thinking about what kinds of policies might make sense in a world like that to make monetary policy work."

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