1. I still hope we eventually reach the point where monetary policy decisions by the Fed & the rest of the world's central banks will be set by transparent algorithms rather than the judgments of individual unelected bureaucrats.
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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.
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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.
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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.
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