"It is easy to confuse what is with what ought to be, especially when what is has worked out in your favor."
- Tyrion Lannister

"Lannister. Baratheon. Stark. Tyrell. They're all just spokes on a wheel. This one's on top, then that's ones on top and on and on it spins, crushing those on the ground. I'm not going to stop the wheel. I'm going to break the wheel."

- Daenerys Targaryen

"The Lord of Light wants his enemies burned. The Drowned God wants them drowned. Why are all the gods such vicious cunts? Where's the God of Tits and Wine?"

- Tyrion Lannister

"The common people pray for rain, healthy children, and a summer that never ends. It is no matter to them if the high lords play their game of thrones, so long as they are left in peace. They never are."

- Jorah Mormont

"These bad people are what I'm good at. Out talking them. Out thinking them."

- Tyrion Lannister

"What happened? I think fundamentals were trumped by mechanics and, to a lesser extent, by demographics."

- Michael Barone

"If you want to know what God thinks of money, just look at the people he gave it to."
- Dorothy Parker

Tuesday, December 06, 2011

Fed must act now to boost economy, Evans says

While 3-percent inflation may sound "shocking," he said, research shows that central banks should fight liquidity traps by allowing inflation to run above target over the medium term.

Since high U.S. unemployment is probably due to the effect of a liquidity trap rather than a structural shift in the economy, Evans said, added monetary stimulus is justified.
And if it turns out, he said, that the real problem was indeed structural and easier monetary policy sparks a rise in inflation, the Fed can simply tighten policy before it threatens to reach the hyperinflationary levels of the 1970s.


The audience of several hundred entered the large convention center where Evans spoke under the watchful eyes of half a dozen armed members of the county sheriff's department, who were on site because of a threatened demonstration by Occupy Muncie.

Evans had previously suggested setting the unemployment trigger for monetary policy tightening at 7 percent but did not mention any specific figure in his prepared remarks on Monday.

The Fed's policy-setting panel meets next week to discuss what, if any, action to take to boost the economy. While many Fed officials appear to support some change in Fed communications, only a few have said they would support Evans' proposal.

Next week will be the last time Evans votes on the panel until 2013.

(Via DeLong twitterstorm)

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