Understanding Kocherlakotas Past...
A question:
@noahpinion I wonder if Kocherlakota was intentionally trolling when he warned about the deflationary impact of low interest rates.
— Andy Harless (@AndyHarless) September 29, 2012
My view: 20% chance of trolling, 80% simply not having done his homework--not understanding that in his model the way you get from your starting point of reduced interest rates to the long-run equilibrium of lower inflation is that you have a hyperinflation in the short run.
