Saturday, January 17, 2009

UPDATE Krugman: Alert! TIPS Spread ...now Taylor Rule

Not exactly the same thing, but very much related and goes on at Krugman:


But looking forward, the Taylor rule says that the Fed should cut rates a lot from here — in fact, to negative 6%. That’s not surprising: we’re clearly opening up a huge output gap, inflation is turning into deflation.



No comments:

Post a Comment