Current excess reserves could create a massive increase in the money supply if banks significantly increase their lending or investing.

Greater transparency is a means to better synchronize the public with policymakers and minimize the risks of undesirable economic outcomes.

It's hard to make a firm prediction as to when the Fed will raise interest rates.

The FOMC’s two-pronged approach involves a potential conflict: forward guidance assumes a high degree of substitutability across the maturity structure, while quantitative easing assumes a low degree.

On balance, the figure suggests that structural unemployment during economic downturns has increased since 1991.

Permanent increases in the monetary base foreshadow eventual increases in inflation that can increase, rather than reduce, unemployment.

In order to maintain its credibility, however, the FOMC will have to take actions consistent with achieving its stated inflation objective.

Weak lending may still be the culprit behind low inflation, but monetary aggregates may no longer closely track credit conditions.

Inflation is seldom caused by lump-sum transfers but is often caused by higher government spending programs.

The sale of typical securities would force the Fed to contract its lending programs, whereas the sale of Fed bills would not.