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
Yes, Andy. The siren call of prediction. I understand that 'long and variable lags' suggest planning ahead, but reacting to current circumstances is by far the most important responsibility and a difficult one. 'Where are we now?' should be the focus of a lot more research and frame policy.
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
Yes, Andy. The siren call of prediction. I understand that 'long and variable lags' suggest planning ahead, but reacting to current circumstances is by far the most important responsibility and a difficult one. 'Where are we now?' should be the focus of a lot more research and frame policy.
in truth, I would like to see a lot less talk and a lot less action on their parts, but they love the cameras too much to stop