tag:blogger.com,1999:blog-5713178645208582139.post3494233426864873945..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: The Knowledge Problem In Monetary PolicyDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-67524100247584137152016-10-31T05:00:26.266-05:002016-10-31T05:00:26.266-05:00I am extremely glad to see this suggestion put for...I am extremely glad to see this suggestion put forward. I have seen this idea elsewhere, that Volcker's ruthless imposition of a draconian recession to "tame inflation" actually was instrumental in destroying labor unions and encouraging the deindustrialization we've suffered. Seems to me it was in Wall Street: How it Works, by Doug Henwood, but I'm not certain. The Procopiushttps://www.blogger.com/profile/17554355440319405363noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-33000598539633262132016-10-29T10:33:26.429-05:002016-10-29T10:33:26.429-05:00The "knowledge" problem? Equating belief...The "knowledge" problem? Equating belief with knowledge. Here's a doozy: It's conventional wisdom that Volcker was a successful, if harsh, Fed chair because he tamed inflation. What if the CW is wrong. What if the path since (including deindustrialization of the US economy, stagnant wages, increasing inequality, financial instability) can be traced to the Volcker "success&raywardhttps://www.blogger.com/profile/03723450690502187828noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25669682362669901932016-10-29T09:52:59.919-05:002016-10-29T09:52:59.919-05:00Hi David, I appreciate your thinking so much. When...Hi David, I appreciate your thinking so much. When I first read the title of your article, I knew it had to be about the output gap. Surely this is the biggest knowledge problem in monetary policy. <br />My estimation of potential GDP instantly started to go down as the crisis unfolded, whereas the CBO's did not. Consequently my output gap estimation did not go as negative and reached a Edward Lamberthttp://effectivedemand.typepad.com/noreply@blogger.com