Sunday, March 9, 2014

A Scorecard for Monetary Policy

People worry too much about the details of Fed policy, and not the results.

James Hamilton, writing at Econbrowser, discusses a monetary policy conference that all the bigwigs went to.

At it, Charles Evans (president of the FRB of Chicago) produced the chart below. Charles Plosser (president of the FRB of Philadelphia) concurred, but argued that the bullseye is a lot fatter than a single point. I don’t know what he meant, but I’d be comfortable with the second smallest ring.

Source: Evans (2014).

N.B. I’ve told you before that Hamilton is a big name in time series macroeconomics. Plosser is also huge, but mostly as a theoretician. Evans is also a name guy, but not quite as well-known as the other two.

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