Yes! It is too much to expect to use Fed's interest rate policy to stop bubbles. Plosser--FOMC Job: Stop Inflation on.wsj.com/RzntpR
@mileskimball In addition to debate btw focusing on asset vs consumer price inflation, there's also the question of the dual mandate?- @mileskimball But isn't means to the ends an issue as far as impt of order - isn't price stability better focus than unee for monetary pol?
- @mileskimball Only if headline converges to core though, right? If not, then shouldn't one be more focused on headline?
- @mileskimball Understd for policy assessmt and action - curious if u feel headline needs converge core long term to ensure rel stab prices?
- @mileskimball I agree with everything you've just said - but wouldn't one take any permanent changes into acct since part of prices paid?
@mileskimball @JonathanProber current core forecasts future headline better than current headline ... that's why core of interest- @Claudia_Sahm @mileskimball Understand core is better in theory - curious whether you think better forecasting power continues?
- @Claudia_Sahm @mileskimball Arguably very easy global monetary policy could allow food and oil prices to more likely outpace other prices?
mileskimball
Miles Kimball
Professor of Economics and Survey Research at the University of Michigan
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