We agree on the underlying economics, but I do not find it useful to define monetary easing or tightening in terms of something no one observes and on which there is much disagreement (r*). Instead, we should say a rate cut is an easing and argue whether it is justified.
-
-
-
So, for example, if r* falls a lot and the Fed cuts a little, we can say the Fed did not ease enough and policy ended up being too tight.
- 3 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.