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

Right. You could target the inflation rate not falling. I mean, we don’t have to go all the way. This is the subtle thing about this. I think the pure Taylor rule overstates our credibility, but people do not think that we are going to follow it perfectly. They don’t have very diffuse priors over what policies. We are somewhere in-between, and I think bolstering that credibility is important. Something I was going to say in the policy round—given that we haven’t announced a target, we ought to try that first. That comes first, before saying that we are going to move our target up for a little while.

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