Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Externalities and Fed monetary policy http://www.tvhe.co.nz/2008/03/12/externalities-and-fed-monetary-policy/ The Visible Hand in Economics Thu, 13 Mar 2008 18:50:57 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Matt Nolan http://www.tvhe.co.nz/2008/03/12/externalities-and-fed-monetary-policy/#comment-1074 Thu, 13 Mar 2008 18:50:57 +0000 http://tvhe.wordpress.com/?p=284#comment-1074 Agreed 😛

]]> By: CPW http://www.tvhe.co.nz/2008/03/12/externalities-and-fed-monetary-policy/#comment-1073 Wed, 12 Mar 2008 08:20:37 +0000 http://tvhe.wordpress.com/?p=284#comment-1073 I think there is a coordination game problem for credibility. When the Fed is targeting growth and the ECB inflation, it undermines how credible we believe either will prove to be in carrying through on their prescribed course of action.

To answer your question, I think the Fed is right for now. It is more likely that the ECB will cave and cut rates than the Fed switches to inflation fighting mode. If growth roars back in the States in 2009 (as many are forecasting) then maybe you could say the ECB was right. We’ll see.

]]>