Comment of the Day: Puzzling That the Phrase "Employment-to-Population Ratio" Does Not Appear: "The other odd thing is that Bullard's argument amounts to...:
...'it seems the policy we have been following has worked perfectly, so we have to change it'. There is an unstated assumption that the FF rate should be kept at 0.25 only when this is necessary. I would ask why, but I'm confident that the reason is that a near zero safe rate makes it difficult for commercial banks to obtain profits. Also, like Krugman, I came to that view reading this blog.