John Hussman, the manager of Hussman Funds, writes a weekly commentary that is followed closely by my firm as well as many others involved in the investment world. In his most recent commmentary he examines the value of monetary policy in relation to fiscal policy. He does an interesting mental exercise utilizing game theory and "Circus Peanuts" to understand Bernanke's real options for interest rate changes. Is it true that the Fed is impotent?
http://hussmanfunds.com/wmc/wmc080609.htm
Principles of Economics, 11e
-
The new edition of my favorite textbook will be available on January 9,
ready for spring semester classes.
1 week ago
.JPG)
.jpg)
1 comment:
I don't think the message was impotence. Hussman attempts to systematize and predict "rational choice" by the Fed in the face of uncertainty. What Bernanke chooses to do with rates will certainly impact the economy. The question is whether that impact is washed over by forces beyond his control -- persistency in credit turmoil and the upward spiral in commodity prices, among others.
Post a Comment