Posen: Jackson Hole Not a Coherent, Good Meeting

The transcript discusses a conference where the focus was on academic topics, avoiding discussions on negative rates. Vice Chair Fisher's unprecedented speech followed the chair's, highlighting a lack of coherence. The Federal Reserve's strategy, as explained by Vice Chair Fisher, revolves around inflation targeting, using the Phillips curve to predict wage and price increases, aiming for a two-year inflation target.

What was notable about Vice Chair Fisher's speech at the conference?

• It was the first time he spoke at a conference.

• It focused on negative interest rates.

• It was delivered before the Chair's speech.

• It was unprecedented to have a speech right after the Chair's.

What issue does the Federal Reserve face according to the transcript?

• Lack of communication with the public.

• Lack of theoretical underpinnings in its toolkit.

• Too many strategies to choose from.

• Over-reliance on technology.

How does Vice Chairman Fischer differentiate between tactics and strategy?

• By discussing the difference in his Aspen speech.

• By ignoring the Phillips curve.

• By emphasizing the importance of inflation targeting.

• By focusing on short-term goals.

What is the default strategy of the Federal Reserve as mentioned in the transcript?

• Canonical inflation targeting.

• Interest rate cuts.

• Increasing employment rates.

• Reducing government spending.

What does the Federal Reserve target according to the strategy discussed?

• Immediate economic growth.

• A two-year inflation horizon.

• A one-year inflation horizon.

• Long-term employment rates.