Narayana Kocherlakota, Columnist

How the Fed Turns Good News Into Bad

Events that lower inflation should allow the central bank to create more jobs. But it doesn't.

October 11, 2016 at 11:00 AM UTC

Narayana Kocherlakota is a Bloomberg Opinion columnist. He is a professor of economics at the University of Rochester and was president of the Federal Reserve Bank of Minneapolis from 2009 to 2015.

Positive shock.
Photographer: Christopher Furlong/Getty Images

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In principle, all would reduce inflation. With more steel capacity, there would be downward pressure on steel prices. With better extraction technologies, oil and gas prices would tend to be lower. And robotics enhancements would weigh on both wages and prices.