01940cas a2200277 a 4500 AALejournalIMF015313 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513595702 1018-5941 BD-DhAAL BD-DhAAL Alichi, Ali. Avoiding Dark Corners : A Robust Monetary Policy Framework for the United States / Ali Alichi, Kevin Clinton, Charles Freedman, Ondra Kamenik. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (47 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The Fed has taken several steps towards strengthening its monetary framework over the past several years. Those steps have supported the Fed's efforts to stimulate the economy through forward guidance despite being constrained by having policy rates at zero. We show that an optimal control approach to monetary policy, which includes the publication of a baseline forecast and a description of the uncertainties around that outlook, combined with an improvement in the Fed's communications toolkit, could further enhance the effectiveness of Fed policy. In the current conjuncture, such a risk management approach to monetary policy would result in both a later liftoff of policy rates and a modest, but planned, overshooting of inflation. Mode of access: Internet Clinton, Kevin. Freedman, Charles. Kamenik, Ondra. IMF Working Papers; Working Paper ; No. 2015/134 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/134/001.2015.issue-134-en.xml IMF e-Library