Higher inflation rate may be allowed by the Fed

Interesting two-part interviews with Charles Evans, Chicago Fed president. He argues that the Fed's accommodative policies have been working, and he would support further aggressive easing.





In particular he mentioned that a high level of inflation rate (say, 3% per anum) should be allowed.

He also mentioned a recent opinion piece on Financial Times by Professor Michael Woodford, a leading monetary macro economist, which focuses on setting inflationary expectations as a policy tool.