Blinder said it will take years to do that. “I hope it won’t be decades,” the Princeton University professor added.
The bottom line for policy: a prolonged period of rock-bottom interest rates.
“I’d be very surprised if it’s less than three years,” said David Wilcox, a former Fed official now with the Peterson Institute for International Economics. “I could see it being as much as six or seven years if the damage from the crisis proves to be much more long lasting.”
--With assistance from Edward Bolingbroke and Benjamin Purvis.
This article was provided by Bloomberg News.