Fed Doves Need to Think Big

The Federal Reserve Bank of Chicago’s Charles Evans makes a case for loose money that only works if you assume that instability has been expunged from the financial system.

After weeks of delay thanks to the federal government shutdown, the U.S. Bureau of Labor Statistics released the lackluster September jobs report this morning. Economists at the Federal Reserve Bank of Chicago think that we won't return to full employment until sometime in 2018 if jobs growth remains at the pace set since the start of 2011 -- and that's after making generous assumptions about aging, birthrates and immigration. One possible solution: financial reform.

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