Kocherlakota slays Magic Walrus

Validity of the Neo-Fisherian Hypothesis:

The neo-Fisherian hypothesis is as follows: If the central bank commits to peg the nominal interest rate at R, then the long-run level of inflation in the economy is increasing in R. Using finite horizon models, I show that the neo-Fisherian hypothesis is only valid if long-run inflation expectations rise at least one for one with the peg R.

Implications?
No in finity, no infinite subdivision.  The economy is a finite network, queuing system.  Hence, we have to redo 45 years of MIT Basket Weaving.One direct result is infrastructure spending. The finite needs for that money is pension stuffing, and that is what happens.  Hence the corollary, Kanosian stimulus will not work.