Another argument for sustaining low rates follows because optimal policies may involve a slow, or “inertial,” adjustment of rates; see, for example, Woodford (2003).
25  In October 2009, private forecasters in the Blue Chip survey projected that the unemployment rate would be near 10 percent and overall inflation as measured by the consumer price index (CPI) would be 2 percent at the time that short-term interest rates (three-month Treasury bill rates) rose above 50 basis points.