Thursday, 16 April 2015

Bernanke's blog.

I like this passage from a recent post.

"Finally, a principal motivation that proponents offer for changing the monetary policy target is to deal more effectively with the zero lower bound on interest rates. But economically, it would be preferable to have more proactive fiscal policies and a more balanced monetary-fiscal mix when interest rates are close to zero. Greater reliance on fiscal policy would probably give better results, and would certainly be easier to explain, than changing the target for monetary policy. I think though that the probability of getting Congress to accept larger automatic stabilizers and the probability of their endorsing an alternative intermediate target for monetary policy are equally low."

Translated into plain English, that's "Economic growth in the US would be much better if it weren't for that monkey house down the road known as "Congress"".

Further translations of overly diplomatic language into brutally realistic English will appear here from time to time.


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