Former Fed Governor Tarullo doesn’t much care for models based on inflation.

I linked to this piece in the Links post the other day, but I wanted to dive into it a little more thoroughly, as it pertains to the the Fed Chair, Monetary Policy, etc.

I’ll talk a little about my questions regarding internal Fed politics (maybe too much), and then look at former Fed Governor Tarullo’s white paper “Monetary policy without a working theory of inflation”.  He offers some really good insight into the policy and projection making practices at the fed.

Continue reading “Former Fed Governor Tarullo doesn’t much care for models based on inflation.”