“Fed’s Plosser: Monetary Policy Has Its Limits”
“In a speech to be delivered in Santiago, Chile, on Monday, Philadelphia Federal Reserve Bank President Charles Plosser cautioned against relying too much on the central bank and said its powers ought to be curbed to prevent abuse.
“I believe we have come to expect too much from monetary policy,” he said, according to prepared remarks, a copy of which was made available in Washington before the speech.
“Monetary policy is not going to be able to speed up the adjustments in labor markets or prevent asset bubbles, and attempts to do so may create more instability, not less.”” Read more.
“Fed’s Plosser: Monetary Policy Has Its Limits”
Emily Kaiser, Simon Gardner, Brad Haynes
Reuters, January 18, 2011.
Image by Simon Howden / FreeDigitalPhotos.net.
