What if the Fed is beating a donkey (an economy with 1% growth potential) for not being a horse...
What if the Fed is beating a donkey (an economy with 1% growth potential) for not being a horse (3% growth), writes Jeremy Grantham, wondering if the man (Bernanke) who missed the greatest macro event of our lives is also making an incorrect assumption about the economy. "Fine-tuning economic growth ... is hardly likely to get any easier by badly overstating trend-line growth ... The Fed will keep trying to whack the donkey for far too long."
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