Second, productivity-led growth that does not raise the underlying rate of resource utilization does not increase inflationary pressures and thus, in my view, should not prompt a policy tightening. Finally, the Fed's current policy of resisting a fall of inflation below its implicit zone for price stability does not, in my opinion, signal a new dovishness with respect to inflation in general.
I expect the Fed to be just as tough in resisting unwanted upward movements in inflation as it currently is in resisting undesired declines. BIS Review 39/2003  5  References Bernanke, Ben (2003a). “Will Business Investment Bounce Back?” Speech delivered at the Forecasters' Club, New York, New York, April 24, www.federalreserve.gov. Bernanke, Ben (2003b).