nick rowe
uncle milty's thermostat:
"
The contrast between the periods before and after the middle of the 1980s is
remarkable. Before, it is like a chart of the temperature in a room without a
thermostat in a location with very variable climate; after, it is like the temperature
in the same room but with a reasonably good though not perfect thermostat, and
one that is set to a gradually declining temperature. Sometime around 1985, the Fed
appears to have acquired the thermostat that it had been seeking the whole of its
life."
he likes this choice piece of product price change moderation
the famed great moderation a tiresome banality
yes the run among north market economies
1985 till now has featured milder fluxing and slow changing product prices
but is that worth more
then the prior eras faster gains in real output units per unit of real input
and even more obvious wage stag versus wage rise ?
http://www.msjc.edu/DanPynn/Documents/TheFedsThermostat.pdf
