Customer Quote by Edward C. Prescott
“It is an established scientific fact that monetary policy has had virtually no effect on output and employment in the U.S. since the formation of the Fed.”
About This Quote
Source Academic paper: Monetary Policy Effectiveness, 1990s
Monetary policy has had little impact on U.S. output and employment since the Fed's creation.
In simple terms: Policy has limited effect.
Key Takeaway
Rethink economic tools.
Themes
economics
policy
ineffectiveness
Mood
analytical
critical
Type
academic
informative
When to use this quote
- government budgeting
- central banking
- inflation control
- employment strategies
Key Concepts
macroeconomic theory
monetary policy
Questions to Reflect On
- What alternatives could drive growth?
A Different Perspective
Does this mean other policies are more crucial?
