February 27th, 2011
Econintersect: Janet Yellen presented detailed analysis by private sector parties which compares the results of Fed monetary policy to counterfactuals where nothing was done. Yellen, Vice Chair of the Federal Reserve, spoke Friday, February 25, at the University of Chicago Booth School of Business U.S. Monetary Policy Forum, New York, New York. Yellen emphasized that communication by the Fed was an significant factor in achieveing success because expectations of Fed actions was of critical importance. Follow up:
Follow up:GEI Analysis has posted the Yellen speech with graphics embedded for easier reading. The speech as posted by the Fed has the graphics in a separate file requiring clicking back and forth to read text and look at graphs discussed.
Editor's note: The presentation is quite logical and the comparison to the counterfactuals is believable. What Yellen doesn't address is whether there are other counterfactuals that would conclude we could have done better.