The OMT Goes to Court by Carola Binder
Commenter "PeterP" (prickish ID):
"Monetarists."I think your post is a bit self contradictory. How can the Fed manage expectations if it is not running the economy? If it did manage expectations it would in fact be running the world economy, but it can’t.Each time monetarists are asked to show mechanisms they either invoke some stuff that is experimentally not detectable (expectations Imp) or mechanisms that cannot work in the real world (like the hot potato effect or the money multiplier effect).