Wednesday, May 30, 2012

Intentions trump outcomes

The plugged tunnel: "it’s true that inflation fell a bit faster than markets expected during the 1980s.  But it’s equally true that inflation fell faster than Volcker wanted in the 1980s." Does this suggest sincerely signaled intentions by a fed chair are seen as almighty If market traders see thru phony intentions to real intentions so well Then once they read intentions of the sit tin' chairperson they assume "such will come to pass" even after n quarters when it doesn't