
IPFS News Link • Economy - Economics USA
Former Fed President Demands Negative Rates To Combat "Terrible" Fiscal Policy
• zerohedge.comBefore abdicating his post at the Minneapolis Fed to former Goldmanite/TARP architect Neel Kashkari, Kocherlakota was the voice of Keynesian "reason" for the FOMC.
Although his pronouncements never measured up to the power of the Bullard, Kocherlakota did call on a number of occasions for MOAR dovishness, noting that if the US economy were to decelerate (which it has), more asset purchases may be warranted.
He's also suggested on a number of occasions that if the government wants to help the Fed out, it will issue more monetizable debt, thus giving Janet Yellen more paper to buy in a world where central bankers are increasingly bumping up against the limits of Keynesian insanity.
In October, following the Fed's "clean relent", Kocherlakota suggested that the time has come for NIRP in the US. As a reminder, here are the bullets:
KOCHERLAKOTA SAYS FED SHOULD CONSIDER NEGATIVE RATES
KOCHERLAKOTA: TAPERING ASSET PURCHASES LED TO SLOWER JOB GAINS
KOCHERLAKOTA SAYS JOBS SLOWDOWN 'NOT SURPRISING' GIVEN POLICY
KOCHERLAKOTA: TAPERING ASSET PURCHASES LED TO SLOWER JOB GAINS