"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

Sunday, June 10, 2012

Crucifying Mankind Upon a Cross of 2 Percent Inflation Targeting by Yglesias
I think the right way to think about this is that inflation and employment aren't two separate levers that the Federal Reserve addresses separately. Rather, the Fed impacts both inflation and employment by influencing aggregate demand. A years-long span of 8+% unemployment helps keep prices low. People who are broke or unemployed curtail their own consumption and thus alleviate scarcity. A tradeoff needs to be made in the short-term. If gas prices spike, people will be upset and many families' bottom lines will suffer. But is keeping the labor market weak in order to keep millions of people unemployed rather than commuting really a sound way of coping with the moderate scarcity of oil? I say no. Ben Bernanke seems to say yes. But he's getting away with not putting the issue squarely before the public.

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