What can Eeyore and Tigger Teach Bernanke About Monetary Policy?
What can Eeyore and Tigger tell us about the current state of monetary policy? A lot. At least that’s the argument that Betsey Stevenson and I make in our new column for Bloomberg View.
The Fed is now engaged in the game of “forward guidance”—they’ve announced that they anticipate keeping interest rates at zero, until late 2014—and hope that it will shape the recovery. But what effects will this announcement have? To figure this out, let’s visit two of the greatest ever Fed Chairmen: Eeyore and Tigger.