Money growth rules could have sped up US economic recovery
The article discusses how changing the Federal Reserve's policy from managing interest rates to targeting money growth could be beneficial. By adjusting money growth rates in response to changes in the economy, the US could stabilize output and inflation effectively. Simulations show that this approach would have led to a quicker recovery from the 2007-9 recession with shorter periods of low interest rates. Money growth rules could be a simple yet useful tool for guiding monetary policy and addressing concerns about effectiveness during economic downturns.