tag:blogger.com,1999:blog-5713178645208582139.post6172984262679854816..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: What is the Current Stance of Monetary Policy?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5713178645208582139.post-28815219063128254152010-07-11T22:57:01.231-05:002010-07-11T22:57:01.231-05:00Andy,
I believe the Fed can largely determine the...Andy,<br /><br />I believe the Fed can largely determine the path on nominal spending or AD. Now it has to want to, but if it commits to doing so there is no reason why it wouldn't be succesful. The problem with the use of my expected inflation series is that it assumes only AD shocks are driving it, but it could well be that AS shocks are driving it too. In the current environment it David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-78710996038668497792010-07-10T17:09:47.328-05:002010-07-10T17:09:47.328-05:00I think I made the case better (and sooner) than e...I think I <a href="http://blog.andyharless.com/2010/06/mankiw-rule-with-quantitative-easing.html" rel="nofollow">made the case</a> better (and sooner) than either one of you. The problem with your argument is that it assumes that the Fed is capable of influencing the expected inflation rate, and that it can do so with sufficient intensity to offset any other factors that may be influencing it. Andy Harlesshttps://www.blogger.com/profile/17582263872850949568noreply@blogger.com