Make-Up Policy: Where Art Thou?
Beckworth on monetary policy.
Make up policy is not some magic expectation issued by the Fed. Making up nominal money means the Fed has to permanently lose money, and being a central bank, that means burn a few Treasury bond holdings.
A missing component is dealing with the Right to Coin and a bunch of bonehead Supremes, and that forces a New Fed contract, coming soon. And getting a New Fed contract implies we be assured of smarter small state governors who understand how this works. Good luck to us, but Beckworth is right.
There will be Godotists in every step of the path forward, every priors crowd producing a philosophy..
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