“Lost”

Posted on by under Monetary Policy

The Fed really needs a makeover!

If it isn’t bad enough that the mainstream model is driven by two unobservable variables — the neutral rate and the real rate — James Bullard wants to convince us that policy decisions are based on regimes that are unknown and, even better, switches between regimes that are not forecastable.  Does this in anyway differ from a Ouija board?

One thought on ““Lost””

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