The government increased payments to individuals without reducing spending elsewhere in the budget.

The only outcome consistent with the Fisher equation holding and the FOMC’s zero interest rate policy is that the “long run” is considerably longer than 4.5 years.

Anemic investment in residential and commercial real estate has been a significant factor contributing to slow growth in employment.

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

Before 2000, the tax burden shifted from the lowest 80% of earners to the highest 20%; since 2000, the burden has shrunk for all groups, but more so for the highest earners.

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

The behavior of term OIS rates following the three instances of FOMC verbal guidance provides no support for the efficacy of the FOMC’s forward guidance monetary policy.

The excess supply of commercial and residential real estate might explain why the historically low nominal and real interest rates have had relatively little effect on stimulating investment.

As the IOER rate increases, less money will be given to the Treasury and more will be given to banks for the sole purpose of holding excess reserves (i.e., idle deposits at Federal Reserve Banks).

Our approach offers several advantages over LSAPs as a financial mechanism to enhance forward guidance.