Bernanke offers ideas for Fed’s policy framework review


Using unconventional tools to increase policy space should be prioritised over raising the inflation target, former Federal Reserve chair Ben Bernanke says in recent research.

His proposals – presented at the annual conference of the American Economic Association – come as the Fed draws close to finalising its formal monetary policy framework review, with decisions due in mid-2020.

Bernanke argues that tweaks to the Fed’s inflation targeting framework and the addition of yield curve control

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