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  • Wall Street Breakfast: Must-Know News [View article]
    "Though a central bank cannot cut interest rates below zero, the research suggests the Fed should use unconventional policies to create the equivalent of a minus 5 percent interest rate."

    Unconventional policies.
    The Taylor rule appraoch goes something like this; "In economics, dynamic inconsistency, or time inconsistency, describes a situation where a decision-maker's preferences change over time, such that what is preferred at one point in time is inconsistent with what is preferred at another point in time. It is often easiest to think about preferences over time in this context by thinking of decision-makers as being made up of many different "selves", with each self representing the decision-maker at a different point in time. So, for example, there is my today self, my tomorrow self, my next Tuesday self, my year from now self, etc. The inconsistency will occur when somehow the preferences of some of the selves are not aligned with each other."

    Makes sense to me! If that's true of our decision makers then government is defiantly to big, but it explains a lot of things lol
    Apr 27 08:31 am |Rating: +6 -1 |Link to Comment
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