Tuesday, October 30, 2012


Questions for class:

1. Is QE3 (the third round of quantitative easing, i.e., the Fed printing $40 billion each month to buy mortgage backed securities) going to help the economy? If inflation returns, will the Fed be able to reverse it policies fast enough to soak up all the money it has injected into the economy?

2. Find another source to support your case.

For a good review of Fed basics (and changes in natural unemployment rate) watch this 40 min video:

Lecture at NY Fed's Symposium for College Professors (3-2012) by Robert Rich

The link to the slides for Robert Rich's lecture:
PowerPoint slides from Robert Rich's Fed lecture on Dual Mandate (3-2012)

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