Boston College Details Findings in Investment (The Devolution of Federal Reserve Monetary Policy Strategy, 2012-24): Investment

2024 SEP 09 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Current study results on Investment have been published. According to news reporting from Chestnut Hill, Massachusetts, by NewsRx editors, the research stated, “The Federal Open Market Committee’s 2012 Statement on Longer-Run Goals and Monetary Policy Strategy interprets the Federal Reserve’s dual mandate in light of the natural rate hypothesis and the New Keynesian ‘divine coincidence.’ It sets a quantitative objective for inflation but not unemployment and acknowledges that the goals of price stability and maximum employment are generally complementary.”

Financial support for this research came from American Institute for Economic Research.

The news correspondents obtained a quote from the research from Boston College, “The FOMC began deviating from these principles in December 2012, however, and the Committee’s 2020 amended Strategy Statement appears to reflect, instead, the older view that the Phillips curve describes an exploitable trade-off between inflation and unemployment. To bring its strategy back in line with the lessons of contemporary macroeconomic theory, the FOMC could simply abandon the 2020 amendments and return to its original 2012 framework.”

According to the news reporters, the research concluded: “Alternatively, the Committee could eliminate the asymmetries and ambiguities that prevent its new strategy from having the desirable properties of a true price level targeting scheme.”

This research has been peer-reviewed.

For more information on this research see: The Devolution of Federal Reserve Monetary Policy Strategy, 2012-24. Southern Economic Journal, 2024. Southern Economic Journal can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA.

Our news journalists report that additional information may be obtained by contacting Peter N. Ireland, Boston College, Dept. of Economics, Chestnut Hill, MA 02467, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1002/soej.12730. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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