> Try Google searching on "federal reserve monetary policy time lag" and see what hits come up.
Funny that when I did that I found pieces saying exactly what I already knew: that monetary policy changes tend to measurable effects quickly but still take a significant time to reach their peak effect (6-8 quarters), which is what the “policy lag” refers to, and then have reduced effect past that point.
Policy lag doesn't mean that it takes a long time for monetary policy to start having noticeable impacts, which is what was suggested.
> monetary policy changes tend to measurable effects quickly
Measureable effects on interest rates quickly. The reason for that is simple: the interest rates that are measured are usually tied directly to the Fed's rates (usually with an offset that depends on the particular kind of loan) and thus move with them.
But we're not talking about interest rates here. We're talking about prices of commodities like food, which are part of the things that "lag".
> it takes a long time for monetary policy to start having noticeable impacts, which is what was suggested.
What was suggested is that it takes time for monetary policy to start having noticeable impacts on food prices (and more generally prices of commodities).
Funny that when I did that I found pieces saying exactly what I already knew: that monetary policy changes tend to measurable effects quickly but still take a significant time to reach their peak effect (6-8 quarters), which is what the “policy lag” refers to, and then have reduced effect past that point.
Policy lag doesn't mean that it takes a long time for monetary policy to start having noticeable impacts, which is what was suggested.