The Wonks Battle for the Fed

The Federal Reserve is at the center of a tug of war between two schools of academics, one of which thinks monetary policy effects the economy while the other doesn't.
by
Noah Smith
When worlds collide.

OK, so you work in finance. You’re an asset manager, a bond trader or a financial adviser. You have exposure to broad economic risks. Obviously you want to know how the Federal Reserve makes decisions. The amount I don’t know about the Fed could fill a library the size of the universe, so don’t regard me as a Fed expert (for that, go to Tim Duy). But I do think I may have a little bit of insight about one of the issues behind the Fed’s thinking, so I’ll try to explain.

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