Monetary Policy | Econofact

What Information Does the Yield Curve Yield? (UPDATED)

By Michael Klein·December 6, 2018
Fletcher School, Tufts University

The Issue:

Forecasting the twists and turns of the economy is difficult. One set of indicators used to gauge where the economy is headed draws on information from financial markets since the yields paid by financial assets reflect the collective market view of the future state of the economy. An inverted yield ...
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What’s the Problem with Low Inflation?

By Michael Klein·August 6, 2017
Fletcher School, Tufts University

The Issue:

Today's low inflation has some economists puzzled. The Federal Reserve has persistently undershot its inflation target of 2 percent since 2012, when it established this level of inflation as one of its policy goals. Modest inflation has a number of benefits, and some concerns have been raised by the persistence ...
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Leaning on The Fed

By Michael Klein·April 13, 2017
Fletcher School, Tufts University

The Issue:

The Federal Reserve walks a tight balance between maintaining low unemployment and preventing the economy from heating up and unleashing inflation. Its decisions impact groups differently: raising interest rates can be painful for borrowers and businesses seeking to invest and expand; lowering them can ...
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