Tuesday, November 29, 2016

Bernanke and the projections

"Importantly, projections are conditioned on each participant’s individual view of what would be “appropriate” monetary policy, defined as the policy that the individual believes would be most likely to help achieve the Fed’s inflation and employment objectives. So, when projecting the behavior of (say) inflation, a hawkish member of the committee might be assuming a very different future path of interest rates than a dovish member."

Translation this is mutual inconsistent group forecasting 

We need the explicit interest rate policy control settings at a minimum