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Dumb & Dumber in monetary policy circles

That´s the feeling you get when reading stuff with titles such as: Central bankers have one job and they don’t know how to do it Or How should recessions be fought when interest rates are low? Further, it seems central bankers are quick to fall prey to an old and discredited theory and think inflation
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UK monetary policy is too tight: easing required

Not quite the line you will see across most of the market or amongst so-called monetarist economists. In fact, implied by actual nominal growth and expectations for nominal growth monetary policy is too tight. Nominal GDP growth is running at 3.7% YoY and falling, while the best measure of inflation around, the implied GDP deflator
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Bernanke proposes a “temporary back-up” to inflation targeting

Bernanke has presented a paper at Brookings titled “Temporary price-level targeting: An alternative framework for monetary policy”: Low nominal interest rates, low inflation, and slow economic growth pose challenges to central bankers. In particular, with estimates of the long-run equilibrium level of the real interest rate quite low, the next recession may occur at a time
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Low wage growth is no mystery

The Fed wants to see wage growth pick up on the heels of a low unemployment rate so that inflation rises towards 2%. That´s twisted logic, but never mind. The chart below, depicting a “wage Phillips Curve”, indicates that at low unemployment rates (unemployment below 6%, say), there´s a wide range of wage growth rates.
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The myth of “low inflation” debunked

Yellen and the Fed seem surprised that inflation remains below target even with unemployment at historically low levels. With that view coming from the Fed we get pieces with “novel” titles such as The New Fed Team Will Inherit Inflation Miss That’s Mystifying Yellen Nobody seems to know why there’s no US inflation Even absurdly
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The worldwide bond market tops $100 trillion, and we live in a world (as we are incessantly told) of global capital markets.  All told, there is more than $217 trillion in global debt outstanding, and that figure rises by many trillions every year, reports the Institute of International Finance. The U.S. Federal Reserve, as widely
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What have they done?

A frequent argument made by FOMC participants is that the Fed cannot wait too long to raise rates because that would increase the chances that the economy would “overheat”, pushing inflation above target. Two examples: Yellen (2015) If the FOMC were to delay the start of the policy normalization process for too long, we would
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The universal constant

Every few months after the FOMC Meeting, the Fed publishes the Summary of Economic Projections (SEP). An important component of the SEP is the long-run median of the FF rate, real growth rate, unemployment rate and inflation rate. Those are the rates the FOMC expects will prevail in the long run, or the rates towards
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