Has Stan Fischer gone gaga?

After so many years as a top-notch academic in addition to a stint as head honcho at the Bank of Israel, how come he still reasons from a price change?:

A strong dollar is restraining U.S. inflation and exports, justifying a slower pace of interest-rate increases, but on balance the U.S. economy is riding out the effects fairly well, Federal Reserve Vice Chairman Stanley Fischer said Thursday.

He can´t see below the surface and misses the fact that the strengthening dollar (and low inflation) is a consequence of the tight policy his ‘bank’ has adopted!

Or, it could be smart blame shifting, as in “In spite of that the ‘bank’ has done quite well”!

Fischer Gaga

HT Dajeeps

One thought on “Has Stan Fischer gone gaga?

  1. That danged dollar just sprouted wings. Nothing to do with central bank policy.
    Besides Fischer has to worry about inflation in 2017. Or so people say. Long and variable lags. Ergo, always and everywhere the proper monetary policy is “tighter.”

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