For an explanation of how the FOMC interprets its statutory goals, see the Statement on Longer-Run Goals and Monetary Policy Strategy,” which the Committee first issued in January 2012 and reaffirms each year. The 2016 statement is available on the Board’s website at https://www.federalreserve.gov/newsevents/press/monetary/20160127b.htm.
The Costs and Consequences of the 2007-09 Financial Crisis,” Federal Reserve Bank of Dallas, Staff Papers, no. 20 (July), www.dallasfed.org/assets/documents/research/staff/staff1301.pdf. For an alternative view that finds lower effects of moderate crises, but that excludes the recent crisis, see Christina D. Romer and David H. Romer (2015), “New Evidence on the Impact of Financial Crises in Advanced Countries,” NBER Working Papers, no. 21021 (Cambridge, Mass.