Monetary Policy


Bernanke's 'Risk-On, Risk-Off' Monetary Policy

Authors: Benn Steil and Dinah Walker
Wall Street Journal

Benn Steil's Wall Street Journal op-ed, co-authored with Dinah Walker, shows that the Fed has effectively been targeting "risk on, risk off"—prodding investors into and out of risky financial assets—for over a decade now. He derives a rule that predicts the Fed's behavior since 2000 even better than the "Taylor Rule" did from 1987 to 1999.

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