The Real News Network has the story Fed Chair Signals Possible Policy Shift on Unemployment.
EPSTEIN: Well, when the financial crisis hit, the central bank, the Federal Reserve, created about ten to 15 new tools of policy to try to bail out the banks. And while it’s a very good thing that they devoted this conference and a lot of research to trying to figure out what’s going on with the labor market, they need to do a lot more research and devote a lot more attention into what other kinds of tools the central bank can use to generate more and better employment. So, for example, my colleagues here at PERI, Bob Pollin and others, have talked about loan guarantees, asset-based reserve requirements, various kinds of credit lines, and so forth for institutions that are trying to generate more and better jobs to create infrastructure, make the green transition to a fossil [fuel] free economy, and so forth.
This brief video was a tantalizingly brief introduction to what the Fed might be doing to address the unemployment issue. I’d like to hear much more about what tools could be invented for use by the FED. I wonder if the FED could have come up with means to get mortgage relief directly into the hands of homeowners rather than trying to trickle it down to them through the banks.
Although it will probably always be true that fiscal, tax, and regulatory policy have more tools to apply to the problem than the FED’s monetary policy.