Bernanke Needs Bounce in His Tail: Stevenson and Wolfers
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March 6 (Bloomberg) -- Federal Reserve Chairman BenBernanke is trying out a new communication strategy that has thepotential to dramatically change the outlook for the economy.The idea: By telling people more about its longer-term plans,the Fed can stimulate the economy even when interest rates areas low as they can go.
Unfortunately, Bernanke’s timid approach could doom thestrategy to failure.