CSPAN Washington This Week September 22, 2013
Why we have not anticipated the relatively slow growth. Its important to recognize that what Monetary Policy affects is not the potential rate of growth, long run. Rather, the cyclical part, the deviation of output and employment from its normal level. In predicting the amount of slack in the economy, so to speak, we have done a little better. Our predictions of unemployment, for example, have been better than our predictions of growth and, in particular, one thing has been quite striking is that unemployment we were too pessimistic on unemployment for this year. Unemployment has fallen faster...