Gruber, Joseph, Andrew McCallum, and Robert Vigfusson (2016). “The Dollar in the U.S. International Transactions (USIT) Model,” IFDP Notes. Washington: Board of Governors of the Federal Reserve System, February 8. Hamilton, James D., Ethan S. Harris, Jan Hatzius, and Kenneth D. West (2015). “The Equilibrium Real Funds Rate: Past, Present, and Future,” NBER Working Paper Series 21476. Cambridge, Mass.
In my remarks today, I will explain the rationale for the monetary policy measures taken since mid-2014 and the effects they are having on the on-going recovery. Secondly, I will address some financial stability risks portrayed in our just published Financial Stability Review.