How low can interest rates go before hurting the economy? Two new working papers on financial intermediaries and their impact on the transmission of monetary policy.

US economists write to Janet Yellen recommending an increase of the Fed’s inflation target. Not everyone is on board though!

How will the Fed shrink its balance sheet and what should its ultimate size be? Federal Reserve Board staff, Narayana Kocherlakota, Ben Bernanke and Christopher Sims answer these questions.

Cecchetti and Schoenholtz on what has become of Bitcoin. Larry White on the new dollar-pegged cryptocurrencies and Bordo and Levin on central bank issued digital currency.