Dmytro Kharkov

David Andolfatto: Debate at FOMC over state-contingent versus calendar-based policy

David Andolfatto: Debate at FOMC over state-contingent versus calendar-based policy
FOMC debate over policy approaches

David Andolfatto recalls James Bullard's efforts at the FOMC to argue that state-contingent policy is superior to calendar-based approaches. Andolfatto suggests that supporters of state-contingent frameworks ultimately prevailed in these discussions.

He also questions who is being accused of misjudging this outcome, addressing his comments in a reply to another user.

Andolfatto has commented on recent market trends in other posts. He noted that the 10-year real interest rate has returned to pre-financial crisis levels. He also said that long-term inflation expectations remain stable.

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