2. Models & algorithms, even with the best of data inputs, are never smarter than the assumptions of the people who write them. But they have the virtue of being completely predictable to financial markets.
-
-
Show this thread
-
3. Monetary policy that is 100% predictable may not be as valuable as monetary policy that is 100% correct, but predictability & transparency are awfully valuable in this space, and much easier to achieve.
Show this thread -
4. A monetary policy algorithm that is transparent can be replicated by many market participants so long as they have the data inputs. That not only helps predictability, it would encourage de facto peer review that could improve performance over time.
Show this thread -
5. Of course, central banks do other things besides monetary policy, and so will always need qualified personnel. But the whole concept of trusting individuals to make subjective judgments - however well-informed - in this area will sooner or later be understood as archaic.
Show this thread
End of conversation
New conversation -
-
-
How about we
#EndTheFed, and let the markets do their job? That would be bestpic.twitter.com/BPjvZ3Fx7v
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Yeah. Good luck with that.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
A vain hope.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Or maybe we just ABOLISH “central banks”?
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
Show additional replies, including those that may contain offensive content
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.