This seems like a BFD to me.

QE3.

This isn’t my dream of super-clear forward guidance, but it’s a huge step in the direction of Krugman/Woodford style precommitment. The key thing is that they’re no longer saying that accommodative monetary policy is conditional on the recovery being weak. Instead, interest rates will stay low for a while even after the economy recovers. In other words,build that apartment building right now.

A little late, but better than nothing.

Wingnuts and Drudge are flipping out.

I’m so mature.

Author: Wiesman

Husband, father, video game developer, liberal, and perpetual Underdog.

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