Morning Must-Read: Cardiff Garcia’s Stanley Fisher’s Views Roundup

Cardiff Garcia: Stanley Fisher’s views on monetary policy:

He does believe in the efficacy of asset purchases when rates have hit the zero lower bound… “by the provision of liquidity… by changing interest rates other than the central bank’s interest rates…”. But he does add that asset purchases are imperfect: their benefits simply outweigh the costs…. He appeared to favour a tapering…. have raised questions about whether he would support the Fed’s use of forward guidance…. Fischer said he tried, on becoming governor of the Bank of Israel in 2005, to give signals to the market – but quickly gave up as he realized it restricted the bank’s future actions when circumstances changed…