No, look at the model. Inflation at the short end of the bankers network spreads up the bankers yield curve. The variance at each inventory level is too large to maintain the rank,and the bankers reduce rank. The adjustment takes time, and during that time Keynesians think we have growth, not just expensive adjustment. Go back to the Dynamic Yield curve from mid 2004 to 2007. The Fed is chasing inflation, and so is the entire network. It takes them three years to get the curve adjusted then a sudden collapse when they find a requantization that allows them to reduce rank. Keynesians get fooled, they think we have infinite dimensionality.
MIT is working the problem.
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