Action at the short end, Mr Draghi argued, was closer to conventional monetary policy.
In any event, many economists argue that as rates approach zero, conventional monetary policy risks becoming less effective.
It also renders conventional monetary policy impotent, as the interest rate that prevents too much saving is below zero.
This is conventional monetary policy that should be treated more routinely.
This time around conventional monetary policy has not been enough.
First, came its rapid easing of conventional monetary policy.
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Current conventional wisdom argues that monetary policy is more useful and more flexible for short-term macroeconomic management.
The conventional wisdom is that Fed monetary policy has been extremely easy, there is a great potential for an acceleration in inflation already baked in the cake, and a return to quantitative easing would be a drastic step.
The growing weight of the stockmarket certainly suggests that conventional measures of the tightness of monetary policy may be misleading.
If that were to be the case, Mr Greenspan suggested that the authorities might have to go beyond the conventional ways of stimulating the economy through monetary policy and fiscal policy (such as Mr Bush's stimulus package) and also look at further improving America's economic flexibility.
Moreover, you suggest that monetary policy can be guided by an index that combines conventional measures of consumer prices with an arbitrary measure of inflation in current house transactions.
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