Tuesday, August 24, 2010

Outlawed from the Thoma blog once again

The damning post simply pointed out that likely monetary policy rules were based on bad math.  After  all, if the yield curve is relatively smooth and upward sloping, I reasoned, then why should the monetary equation generate a negative 5% for short term rates?  Seems reasonable, the economy  computing a more rational curve than the economists.

Keynesians blame the economy for their own bad math.

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