In an environment of low inflation, the Federal Reserve faces the risk that it has not provided enough monetary … financial intermediaries and households; by affecting expectations of the future paths of short-term interest rates, inflation …

expected inflation. The inability of the Fed to maintain a credible commitment to low interest rates in the face of increased … government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …

unconventional policy since early 2009. Our analysis suggests that the net stimulus to real activity and inflation was limited by the … occurred in the absence of the unconventional policy actions--does not occur until early 2015, while the peak inflation effect …--adding 1/2 percentage point to the inflation rate--is not anticipated until early 2016. …