14. As part of its response to the global financial crisis, the Federal Reserve in the United...

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14. As part of its response to the global financial crisis, the Federal Reserve in the United States lowered the federal funds rate target to nearly zero by December 2008 and quadrupled the monetary base between 2008 and 2017, a considerable easing of monetary policy. However, survey-based measures of 5- to 10-year inflation expectations remained low throughout most of this period.

Comment on the Fed’s credibility in fighting inflation.

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