Titled "Death of a Theory," a research paper from St. Louis Fed chief Bullard says decades of...

|By:, SA News Editor

Titled "Death of a Theory," a research paper from St. Louis Fed chief Bullard says decades of conventional wisdom are wrong, and that fiscal authorities should leave it to the Fed to stabilize the economy when tough times hit. "The monetary authority ... can operate effectively even at the zero lower bound," i.e. QE, if 0% rates don't do the trick. (pdf)