tag:blogger.com,1999:blog-7464708.post2075623739046260639..comments2024-03-22T06:05:36.544-04:00Comments on Kids Prefer Cheese: Rep. Ron Paul at today's JEC meeting with BernankeMungowitzhttp://www.blogger.com/profile/02340064320347875601noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7464708.post-77963107804590228312007-11-09T12:07:00.000-05:002007-11-09T12:07:00.000-05:00sorry, that should be Prescott, not Presoctt.sorry, that should be Prescott, not Presoctt.Angushttps://www.blogger.com/profile/03656436431053306500noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-70613211620924612142007-11-09T12:06:00.000-05:002007-11-09T12:06:00.000-05:00I said "Taylor's version of the Taylor rule" which...I said "Taylor's version of the Taylor rule" which would mean inflation coefficient of 1.5, output gap coefficient of .5, target inflation of 2%, output gap determined via Hodrik-Presoctt filtering, target real interest rate of 2%. I guess I'm letting John Taylor pick the target rate of inflation.Angushttps://www.blogger.com/profile/03656436431053306500noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-40106393706085255342007-11-08T21:01:00.000-05:002007-11-08T21:01:00.000-05:00To Wit:"The Taylor rule is a modern monetary polic...To Wit:<BR/>"The Taylor rule is a modern monetary policy rule proposed by economist John B. Taylor that would stipulate how much the Federal Reserve should change the interest rates in response to real divergences of real GDP from potential GDP and divergences of actual rates of inflation from a target rate of inflation." (wikipedia)<BR/><BR/>All of this begs the two central questions--what is the target rate of inflation and the output gap, and how far are we from them? As monetary policy operates with long and varying lags, can this really deliver what you wish? Moreover, who gets to pick the target rate of inflation?<BR/><BR/>So I am not sure what "strictly following the Taylor Rule" actually means.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7464708.post-13531890938852871992007-11-08T20:51:00.000-05:002007-11-08T20:51:00.000-05:00no, not in favor of gold std. but I am on record a...no, not in favor of gold std. but I am on record as arguing that Greenspan's easy money policies have a lot to do with the financial problems we currently face, so I especially like the last paragraph of the quote. Gold std. to draconian for me though.<BR/><BR/>I'd be fine if the Fed actually strictly followed Taylor's version of the Taylor Rule.Angushttps://www.blogger.com/profile/03656436431053306500noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-71223093422016532982007-11-08T20:39:00.000-05:002007-11-08T20:39:00.000-05:00wait, so...help me out. Are you or are you not in ...wait, so...help me out. Are you or <A HREF="http://mungowitzend.blogspot.com/2007/09/goldbug-variations.html" REL="nofollow">are you not</A> in favor of gold standard'ing the U.S.? When you're <A HREF="http://onlyshawn.blogspot.com" REL="nofollow">underinformed,</A> satire is easily missed. I realize that RP didn't say anything about the gold standard in this piece, but afaik, he is in favor of that, and I see it as underlying some of his 'devalued currency' talk.Shawnhttps://www.blogger.com/profile/05093170309806260127noreply@blogger.com