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Top Economist to Back Average Inflation Target at Fed Confab

  • Svennson served at Swedish central bank, worked with Bernanke
  • Such a strategy could mean lower interest rates for longer
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An influential economist and former monetary policy maker endorses an average inflation target in a paper to be presented at the Federal Reserve’s two-day research conference that starts on Tuesday.

Lars Svensson, a Stockholm School of Economics professor and former Swedish central banker, said such an approach would help mitigate some of the problems the Fed faces in a low interest rate, low inflation world.