Summary:
The Powell press conference came and went, discussing the Fed's new approach to inflation targeting. My view is that not much has changed, and we just face largely pointless debates about messaging -- which are predicated upon the questionable assumption that expectation management can fine-tune economic growth.(For this article, I will assume the conventional view that interest rate policy can be used to control inflation. I have severe concerns about this, but if we do not assume that the central bank can fine tune growth to match arbitrary trajectories, the story is a bit more plausible.) Bond EconomicsInflation Targeting: Keep It Simple Brian Romanchuk
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
The Powell press conference came and went, discussing the Fed's new approach to inflation targeting. My view is that not much has changed, and we just face largely pointless debates about messaging -- which are predicated upon the questionable assumption that expectation management can fine-tune economic growth.(For this article, I will assume the conventional view that interest rate policy can be used to control inflation. I have severe concerns about this, but if we do not assume that the central bank can fine tune growth to match arbitrary trajectories, the story is a bit more plausible.) Bond EconomicsInflation Targeting: Keep It Simple Brian Romanchuk
Topics:
Mike Norman considers the following as important:
This could be interesting, too:
Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model
Mike Norman writes The Accursed Tariffs — NeilW
Mike Norman writes IRS has agreed to share migrants’ tax information with ICE
Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius
The Powell press conference came and went, discussing the Fed's new approach to inflation targeting. My view is that not much has changed, and we just face largely pointless debates about messaging -- which are predicated upon the questionable assumption that expectation management can fine-tune economic growth.Bond Economics
(For this article, I will assume the conventional view that interest rate policy can be used to control inflation. I have severe concerns about this, but if we do not assume that the central bank can fine tune growth to match arbitrary trajectories, the story is a bit more plausible.)
Inflation Targeting: Keep It Simple
Brian Romanchuk