Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

Well, as I have said in past briefings, I think the Board’s measure has a better analytical foundation. If I had to pick one measure, I would probably pick the Board’s measure because I think it is trying to do a more precise estimation of comparing apples with apples in terms of comparing TIPS with nominal Treasury securities. This comparison is difficult because you have to make assumptions about what the liquidity premium is on nominal Treasuries that are on-the-run versus off-the-run and versus TIPS. So I think that it is probably useful also to see if movements in the Board’s measure are or are not corroborated by movements in other measures.

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