In the latter respect, gradualism may be helpful to some degree, because it establishes a relatively forecastable pattern of adjustment by the central bank. By varying the pace of policy adjustment, the FOMC may also be able to provide additional signals to bond markets about its views and intentions. Is the Fed really gradualist?
Our annual exports are more than $ billion lower than would be typical at this point in a recovery cycle. Regaining the lost output of companies that have disappeared or downsized will require that existing firms boost their production, that they invest to expand their capacity, and that the net creation of new firms resumes a higher growth path.