wricaplogo

Yellen, Janet

Friday, 05 June 2009

[T]here is still a lot we don't know about the magnitude and duration of the effects of these policies {Fed asset purchases}. Our standard monetary policy models do not incorporate financial frictions that lead to asset purchases having real effects. We lack both the data and theory to provide strong guidance on these policies. Truly, we are sailing in uncharted waters, marking our maps with every bit of information along the way.