NY Fed’s Williams advocates change to inflation-targeting framework

L to R: Central Banking’s Christopher Jeffery and John Williams
John Williams: advocates the introduction of price-level targeting
Shell Jiang

Federal Reserve Bank of New York president John Williams advocates changing the way the Fed targets inflation in a new staff paper. The publication comes ahead of the Fed’s plan to review its monetary policy framework this year.

Williams criticises the current framework for anchoring expectations below the inflation target, “which, in turn, exacerbates the deleterious effects of the lower bound on the economy”, he writes with co-author Thomas Mertens.

The Fed can mitigate this issue by

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: