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A slow recovey and the Fed's response
Board of Governors of the Federal Reserve System ^ | feb 11 2013 | Janet L. Yellen, Vice Chair

Posted on 02/12/2013 10:58:09 AM PST by ExxonPatrolUs

Thank you for the opportunity to speak to you today about the Federal Reserve’s efforts to strengthen the recovery and pursue a goal that it shares with the labor movement: maximum employment.

As an objective of public policy, maximum employment doesn’t appear in the U.S. Constitution, in any presidential decree, or even in the mission statement of the Labor Department. A law passed in 1946 made it a general goal for the U.S. government, but so far the Federal Reserve is the only agency assigned the job of pursuing maximum employment. The 1977 law spelling out that responsibility also assigned the goal of stable prices, and we call this combination of objectives the Federal Reserve’s dual mandate.

With so many people today unable to find work, it might seem odd to highlight such an ambitious and distant goal for employment. I do so because the gulf between maximum employment and the very difficult conditions workers face today helps explain the urgency behind the Federal Reserve’s ongoing efforts to strengthen the recovery. My colleagues and I are acutely aware of how much workers have lost in the past five years. In response, we have taken, and are continuing to take, forceful action to increase the pace of economic growth and job creation.

In the three years after the Great Recession ended, growth in real gross domestic product (GDP) averaged only 2.2 percent per year. In the same span of time following

1 The views expressed here are my own and not necessarily those of my colleagues in the Federal Reserve System. I am indebted to members of the Board staff--John Maggs, Karen Pence,

(Excerpt) Read more at federalreserve.gov ...


TOPICS: Chit/Chat
KEYWORDS:
Pretty charts at link
1 posted on 02/12/2013 10:58:16 AM PST by ExxonPatrolUs
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To: ExxonPatrolUs
Bernanke needs a new trick:


2 posted on 02/12/2013 11:32:33 AM PST by Uncle Miltie (Of the government, by the government, and for the government.)
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To: ExxonPatrolUs

Time to Throw the Phillips Curve
October 20, 2006 9:12 A.M.
http://www.nationalreview.com/articles/219011/time-throw-phillips-curve/jerry-bowyer

Last week the Nobel committee announced that this year’s prize in economics would be going to Dr. Edmund Phelps of Columbia. This is good news indeed for advocates of supply-side economics. Phelp’s principal academic achievement is his successful rebuttal of one of the central tenets of modern Keynesianism: the Phillips curve.

.....

For decades policy makers hewed to the premise that the Phillips curve demonstrates inherent long-term trade-offs between growth and stable prices. This led an entire generation of planners to believe that if the economy is flagging, you should print more money; that if the economy is growing too fast, stop the presses, slow things down, and throw millions of people out of work.


3 posted on 02/12/2013 11:36:38 AM PST by Uncle Miltie (Of the government, by the government, and for the government.)
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To: ExxonPatrolUs

Some really great charts there to show how weak this recovery is compared to other recoveries. BTW, Yellen will likely replace Bernanke when he steps down.


4 posted on 02/12/2013 11:52:27 AM PST by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: blam

Ping. Little more background, re. Vice Chairperson, Janet L. Yellen.


5 posted on 02/12/2013 1:48:18 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: bruinbirdman

Ping. Interesting info on Vice Chairman Janet L. Yellen.

And more behind this other link.

Yellen: Fed To Keep Treasury and Mortgage Rates Low Even AFTER Targets Met
http://freerepublic.com/focus/f-bloggers/2987754/posts


6 posted on 02/12/2013 1:52:00 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: familyop
The Real State Of The Union Is Bleak
7 posted on 02/12/2013 2:11:13 PM PST by blam
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