Sunday, April 29, 2012

defending the idiotic is fun ..if it pays well

we flew and flew successfully
before we had serious areodynamic models
macro policy does not require analytic clarity at the micro level
however micro stick figuring
adds nothing to the policy armamentorium
new keynesianism provides nothing policy hands
didn't comprehend since .....well ....
the post WWII peace boom
paine said in reply to paine...
the long shadow of the late 70's policy crisis
still dominates wonk minds ..unfortunately
paine said in reply to paine...
gist of lesson learned :
wage driven inflation is bad bad bad !!!

keep wage inflation as close to zero as is safe
practical number marks:
NAIRU line of plus 5% UE
wage driven inflation target 1.5 to 3 %
its all balderdash