Thursday, August 18, 2011

Plosser Elaboration

You can see Charles Plosser explaining himself here. He is quite thoughtful, and I did not hear him say anything I disagreed with. There's a funny part where his interviewer asks him if the Fed is getting too "mathy." See what you think.


  1. Steve: The interview is great. Thsnks for drawing attention to it.

  2. Plosser suggested the fed should lie about the true state of the economy in order to maintain "confidence". This is the fatal flaw in the "communications and expectations" paradigm of bernanke woodford mishkin blinder and apparently plosser - politicians have an incentive to sugar-coat reality.

  3. If you're looking for "mathiness," go to 4:40 or so.