Market Monetarism and The Future of Monetary Policy with Scott Sumner
Village Global Podcast
00:00
Is There a Controlled Experiment in Macro?
Interest rates have been falling o globaly in real terms, for forty years. I don't know of any model that suggests you could just suppress that by printing money without creating hyper inflation almost immediately. If inflation over next and 20, 30 years continues to average two %, i think that's a pretty good piece of evidence that my theory about the fed controlling inflation is correct. It would be too much to ask that it would come in at the number they're targeting over decades at a time on an average. What do you think we are likely to learn from this? My preference is to look at market reactions rather than policy announcements.
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