My FOMC colleagues and I believe that we have a responsibility to the American people to consider policies that might promote significantly better economic outcomes. Makeup strategies are probably the most prominent idea and deserve serious attention. They are largely untried, however, and we have reason to question how they would perform in practice.
Before they could be successfully implemented, there would have to be widespread societal understanding and acceptance--as I suggested, a high bar for any fundamental change. In this review, we seek to start a discussion about makeup strategies and other policies that might broadly benefit the American people.