David Stockman economy fed fomc inflation

David Stockman Is Not Particularly Amused With Your Inflation Targeting

"Is there any evidence that the microscopic variance between 1.9%  and 2.3% inflation on the PCE deflator makes any difference to the performance and prosperity of the main street economy?"

"Is there any evidence that the microscopic variance between 1.9%  and 2.3% inflation on the PCE deflator makes any difference to the performance and prosperity of the main street economy?"
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4 comments on “David Stockman Is Not Particularly Amused With Your Inflation Targeting

  1. ^ bla bla bla ….. SKIP to the last 3 paragraphs… Nails it.

  2. Anonymous

    The True Phillips Curve is a scarcity relationship between unemployment and real wages. This makes intuitive sense that the lower unemployment goes the higher wages would go to compete for the labor pool. How this became warped into unemployment and general prices, I have no idea. I guess it’s similar to how a footnote to a court decision became the basis that corporations are people too.

  3. The Phillips curve takes a goldfish bowl perspective on the economy just like all the useless Fed models do. That is, they focus solely on domestic economic conditions and are blind to the rest of the world. But as Stockman points out, labor is a global resource in the 21st century, unlike many decades ago.

    Similarly, the Fed is intentionally oblivious to the whole Eurodollar market (an historical misnomer for dollars on deposit anywhere outside the US, which by the way dwarfs domestic US dollar deposits).

    With such significant data flaws and disinformation, little wonder the Fed is an abysmal failure policy-wise.

  4. Tom Swift

    Economists and Generals fight the last war.
    Drump is in there to be the next Hoover.

    Dave is a little hysterical, but not wrong.

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