“ The Dog that Didn’t Bark: Has Inflation Been Muzzled or Is It Just Sleeping (PDF),” in World Economic Outlook April 2013: Hopes Realities, and Risks. Washington: International Monetary Fund. Kiley, Michael T. (2015). “ Low Inflation in the United States: A Summary of Recent Research,” FEDS Notes. Washington: Board of Governors of the Federal Reserve System, November 23.
While we will definitely aim to prevent cliff effects, it very much depends on the inflation outlook whether we will need a durably higher purchase pace. If this outlook changes, I think the Asset Purchase Program, the APP, is our appropriate instrument of marginal policy adjustment.