FOMC Watch

Paul Romer recently lamented on the current crisis in macroeconomics. The money quote to excusing the pun was that:  Macroeconomic theorists dismiss mere facts by feigning an obtuse ignorance about such simple assertions as “tight monetary policy can cause a recession.” Stanley Fischer, Deputy Governor of the Federal Reserve, is one such theorist Romer had

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Today: Though her speech to the House of Representatives’ Financial Service Committee avoided remarks on monetary policy, Yellen admitted in the Q&A period that if job creation continued at its current pace it could lead to overheating of the American economy which in turn would require a more rapid removal of accommodative monetary policy. In November

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In a speech called “Why Study Economics” to students at Howard University Stanley Fischer attempted to shed some light on a key macro issue. He failed. Illustrating his own confusion about macroeconomics, despite years and years of study, and despite hundreds of research papers, some of which were authored by him. “Why is participation in

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The September meeting released a new set of projections from FOMC members for the Real GDP growth, the unemployment rate, PCE inflation, core PCE inflation and the expected path of the Fed funds rate. Real GDP is expected to be around 2%, unemployment to remain below 5%. PCE inflation is expected to accelerate from the

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NB I only use the word hawk for wanting tighter monetary policy at the moment. I would be hawkish if nominal growth had been running well above 5% for a few years. Dovish only means wanting neutral or looser monetary policy at the moment. These terms are completely relative to current or expected conditions. And

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