Fed Open ed Market Committee, October 30-31st
In his speech at the HEC-Montreal International Transmission and Macroeconomic Policies Conference, Fed Governor Frederic Mishkin discussed the advantages of using monetary policy rules that focus on core inflation rather than headline inflation, mainly because of the inherent volatility of this indicator. In our interpretation, if monetary policy focuses on headline inflation it will not only increase overall price level volatility but it will induce employment volatility as well. For
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