Note to Self: On the Tracks of the "Confidence Fairy"...
Musings on Thomas Malthus, the Hellenistic Age, the Loyal-Spirit Great Kings of Iran 550-330 BCE, and Other Topics: The Honest Broker for the Week of August 17, 2015

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Jackson Hole 2015 Weblogging: Comment of the Day: Charles Steindel: How Well-Structured Is Our Federal Reserve, Anyway?: "Forget about 2% vs. 4% as a target...

...Fed speak (including the accidentally released longer-term staff forecasts)is clearly viewing 2% as a ceiling! So the Fed isn't even committed to the 2% as a centered target. At some point this influences behavior, and leads to the subpar macro performance (and just loads up more risks of a situation that would require further rounds of unconventional policy). I just can't understand it other than primitive "slippery slope" arguments having a disproportionate impact.

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