Re: Re: Re: Re: Re: Brad DeLong's column

[Jim Devine <jdevine@xxxxxxxxxxxxxxx>]

I wrote:
> > In the process, the second problem with Brad's riposte was revealed,
> > i.e., the assumption that the Fed has the _power_ to target real GDP.

Brad says:
> They think they do (albeit imperfectly, with substantial errors)....

well, I think I'm the king of England  (albeit imperfectly, with
substantial errors)! people at the Fed have to think that they have this
power. If they admitted that they can't do it, and that the attainment of
the "Goldilocks economy" was just a matter of luck, then their confidence
would crumble.

Jim Devine jdevine@xxxxxxx &  http://liberalarts.lmu.edu/~jdevine