The Fed raised rates in late 2015

Krugman in 2015:

So here’s William Cohan in the Times, declaring that the Fed should “show some spine” and raise rates even though there is no sign of accelerating inflation. 

From a 2015 NYT gated article, so I did not read the whole article. But it likely was Krugman doing his version of "This time is different...". 

Krugman is wrong.  The federal government needed to borrow, as it does on a regular cyclic basis, Krugman obviously contributing to the cycle. 'This time is different' fraud is the cause of government cycles.

Why did Delong repost the article? Brad knows I was going to actually look at the data and see that Cohan was right. I always check this stuff for worthless talking points.

The Fed has no other response but to raise rates in response to sudden government demands for funds. The Fed is a central banker, remember.  The Fed rate changes have been following the one year Treasury since 1980. 2015 is the typical case of loan demand changing structure and the Fed forcing deposit banks to change structure in response. It is loanable funds working.

Who was doing the jump-shift thing? Borrowers, namely the Federal government, and depositors, mainly the regulated banks. And they did the jump-shift thing right on time, deposits and loans co-adapted as per theory. It happened exactly when William Cohan said.

The fact that some idiot name Hicks claimed at one time that we should engage in cyclic behavior was completely unnecessary, the cycles are built into central banking.  We do not need Krugman or Hicks to cycle, we are good enough at it, and would like to cycle less actually.

The New Fed

We are taking a different tact, we will say:'This time is mostly like last time". The idea is to clear the books more often so the fraudulent Godot will find it undesirable to do the 'This time is different' fraud.  Sandboxers knows this stuff, listen to us.