the better pk:
behold
the "damage done
by the obsession with... “credibility”....."
fed cred as a product price inflation fighter !!!!!!!!!!!!!!!!!!!
pk:
"one of those ideas rooted in theoretical models
that happened to mate perfectly with political prejudices
and hence became part of the orthodoxy almost immediately"
btw
why can't pk use this insight
about what gets certain models that confirm class interests
a quick establishment adoption
(his use of the phrase" political prejudices" is of course
both a tell and a deeply sour note
a blinding agent solidly afixed to the insight machine)
"paul its not prejudice its just simple profit class horse sense)
at a minimum you'd think this clarity on how thinks really work
could serve as a motivational bridge
away from
the whole paradigm mother of scads of scummy models
based on expectations
is it an enigma?
or might we see a chalmers johnson senile emergence
we'll see
at any rate
fed cred got adopted swiftly
"despite a lack of convincing evidence that it really does matter"
----------------------------------------------
good show pk
fed cred?
the fed gets cred by cracking down on signs
of an incipient acceleration
of
increases among product prices
once by vicious crack downs you got cred
then comes the social welfare notion built on fed cred
pk:
"the “sacrifice ratio”,
ie
"the cost in terms of protracted high unemployment to get underlying inflation down. "
see the tale here
crack down hard now and you won't have to crack down as hard next time
to get the same impact ie the same rate of dis inflation
ie crack down hard now and for next time you've given the fed improved disinflation powers
ie the harsh policy induced an increased on going disinflation rate
a formula for volckerdammerung ehh ?
true ?
bring out the historical record
there's the post winter 51 double cross
martin fed taking away the punch bowl
but look two big wrench jobs in the 70's
in particular
look at the big figure four under carter
the volckerdammerung
double camel clutched under reagan...
do you see moderation after that ?
i do but the cost
ya
the last 30 years of wage dirth
so just who got the benefit of this post VOLCKER
improved "sacrfice ratio" ?
and hey what in hell happened in 08 !!!!!!
