Bloomberg has a story that suggests that fiscal austerity NOW isn’t all it’s cracked up to be. Ireland has tightened its belt, but to what end? For the moment, this isn’t an encouraging argument for going hawkish.
Daily Archives: August 31, 2010
THE FED MUST MANAGE EXPECTATIONS
The case for thinking that effective central banking is all about managing expectations is persuasive. There are lots of formal papers arguing for no less, and the numbers confirm that this is indeed how the world works.