Technology and Bernanke have over ruled monetary policy

Will Trump Try to ‘Overrule’ Monetary Policy?

Two things are going on that Mark Thoma never figured out in the post.  

Thing one is that we have an IOER now, a rule change that basically requires Thoma to go back to the lab and redo his theory.  He can warp his theory to fit Magic Walrus, no problem, but he cannot be spouting the same of Kanosian talking points until he fixes the talking point to fit the new rule.

Thing two, the new technology is here/. Basically the market has decided to just pursue the new monetary technology, thus Thoma and the basket weavers do not have to redo Magic Walrus for IOER, they have to redo Magic Walrus for the auto-traded cash network.

The astonishing part is that we have had IOER for nearly ten years.  In in that ten years not one of the kanosians ever thought that maybe, just maybe, the original talking point needs to be adjusted.