What Is Inclusive Full Employment?
In August 2020, the Federal Reserve released its new monetary policy framework: the strategies, tools, and communication practices it employs to achieve its congressionally mandated goals of maximum employment and price stability. The new framework is based on a 20-month review during which Fed officials traveled the country and met with a wide range of organizations to hear about how monetary policy affects people’s daily lives and livelihoods. This framework states that the full employment mandate is viewed as “broad and inclusive.” Given the uneven recovery from the economic recession caused by the pandemic, what does this mean in practice? How can the Federal Reserve help ensure an inclusive form of full employment while also addressing its price stability mandate?
During the Economic Mobility Project’s inaugural virtual event, we explored what a truly inclusive form of full employment would look like and what the Fed can do to help achieve it.
The event included the following:
- A presentation providing an overview of intergenerational economic mobility, given by Bhashkar Mazumder, senior economist and economic advisor, Chicago Fed
- A panel discussion on what inclusive full employment means, featuring William Spriggs, professor of economics, Howard University, and chief economist, AFL-CIO, Wendy Edelberg, director of the Hamilton Project, Brookings Institution and Michael Strain, Director of Economic Policy Studies, American Enterprise Institute
- A fireside chat on different perspectives about inclusive employment and its implications for monetary policy, with Charles Evans, president, Chicago Fed, and Raphael Bostic, president, Atlanta Fed