Re: Re: Re: Re: Re: RE: saving and aggregate demand

[Brad De Long <delong@xxxxxxxxxxxxxxxxx>]

>  >Of course, the fact that it _looks as if_ the Fed has been steering
> > the economy toward low unemployment and low inflation during the
> > last 8 years or so is mostly a matter of luck: if the Fed had
> > followed its vision of the Phillips Curve, we'd still have 6 percent
> > unemployment in the US.
>
> But it didn't. Greenspan overruled Meyer and company and said that
> they should let the unemployment rate drift down and see what
> happened...
> Brad DeLong
>
>
> Right.  But Meyer's our guy and Greenspan is their guy.
> I'm so confused.
>
> mbs

Blame me. It's my fault.

I thought it would be good if the Board of Governors had a solid
Democrat on it who could go toe-to-toe with the model builders on the
staff, and win. The higher-ups at Treasury bought the argument...

I had *no* *idea* that he was going to believe in his own models
strongly enough to be world-class super inflation hawk...


Brad DeLong