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Why the Fed buried monetarism

Central bankers seem to be returning to the pre-monetarist view that trade-offs between inflation and unemployment are real and can last for many years.

The Fed will almost certainly start raising rates in December, but monetary tightening will be much slower than in previous economic cycles, and it will be motivated by concerns about financial stability, not inflation.

THE US Federal Reserve's decision to delay an increase in interest rates should have come as no surprise to anyone who has been paying attention to Fed chair Janet Yellen's comments. The Fed's decision merely confirmed that it is not indifferent to international financial stress, and that its...

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