A ‘Precise and Predictable’ Yellen Fed?

The pursuit of greater predictability and transparency in Fed communications is a mistake, particularly in the context of broad guarantees concerning world-shaking policies. We learned this lesson early in the Cold War through the hard knocks of Korea and Vietnam (not to mention the scares of Berlin and Cuba), and it seems a shame that we appear determined to learn these lessons the hard way all over again.

epsilon-theory-a-precise-and-predictable-yellen-fed-october-10-2013.pdf (383KB)