Ironically, literally every day we see demonstrated the inability of central bankers to grasp how the world actually works rather than how they see it through their particular model's lens. I must admit that I was floored that the BOE would go to Bernanke, the man who presciently explained both that subprime was under control and that the balance sheet would simply shrink back to its previous size, as a source for determining what the BOE was doing wrong. But, he did win a Nobel Prize, so I guess that counts for something. but then again, so did Krugman
Ironically, literally every day we see demonstrated the inability of central bankers to grasp how the world actually works rather than how they see it through their particular model's lens. I must admit that I was floored that the BOE would go to Bernanke, the man who presciently explained both that subprime was under control and that the balance sheet would simply shrink back to its previous size, as a source for determining what the BOE was doing wrong. But, he did win a Nobel Prize, so I guess that counts for something. but then again, so did Krugman