Tuesday, October 27, 2015

Advice for Ms. Yellen

I looked at the first page of the Wall Street Journal today, there to find an article about our favorite gurus, the Federal Reserve Board.  Most market players are predicting that the Federal Reserve Board will do nothing this year about interest rates.

The article contains a really fascinating exchange between William Dudley, president of the New York Fed bank, and John Taylor, an economist of extraordinary common sense, judging from the exchange:

Dudley:  "I don't really understand what is unclear right now."

Taylor:  "Are you kidding?  No one knows what you are doing."

In fact, I would conjecture that the Board itself does not know what it is doing.

Therefore, I suggest that Ms. Yellen and her co-gurus take counsel from the following page:


Surely reading tea leaves will be more accurate than relying on the pseudoscience of econometrics.

From rebloggy.com