Who Should Form Expectations?: The Future of Monetary Policy

Modern monetary policy rests on a simple but powerful idea: Expectations matter. Over the past three decades, central banks have increasingly recognized that monetary policy influences the economy not only through interest rates but also through expectations about future policy. Inflation, investment, asset prices and financial conditions all depend on how households, firms and investors Continue reading Who Should Form Expectations?: The Future of Monetary Policy The post Who Should Form Expectations?: The Future of Monetary Policy appeared first on Fair Observer .