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Aim Quote by Janet Yellen

“If strong economic conditions can partially reverse supply-side damage after it has occurred, then policymakers may want to aim at being more accommodative during recoveries than would be called for under the traditional view that supply is largely independent of demand.” quote by Janet Yellen
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“If strong economic conditions can partially reverse supply-side damage after it has occurred, then policymakers may want to aim at being more accommodative during recoveries than would be called for under the traditional view that supply is largely independent of demand.”

Janet Yellen

About This Quote

Source Speech: Economic Policy Forum, 2023

During recoveries, policymakers should consider easing policies more than traditional models suggest, because demand can aid supply restoration.

In simple terms: Accommodative policy can help repair supply after shocks.

Key Takeaway

Use flexible policy to support supply recovery.

Themes

macroeconomics policy recovery strategies

Mood

analytical cautious

Type

economic strategic

When to use this quote

  • fiscal policy design
  • central bank strategy
  • economic forecasting

Key Concepts

economics public policy business cycles

Questions to Reflect On

  • When should policy shift from accommodative to restrictive?
  • How does demand influence supply health?
A Different Perspective

Too much accommodation may fuel inflation.

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