Centennial Endowed Chair, Professor of Economics @UnivMiami @UMiamiBusiness
Coral Gables, FL
Joined May 2009
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Puzzling Op-Ed by Malpass in the @WSJ. I’m all for better models at the Fed but:
1. The biggest problem with targeting inflation is that rates are nominal?
2. The Fed should incorporate Hall and Woodford’s advances?
Let me answer both with:
xt = Et xt+1− k(it - Et πt+1 -rtn)
Noah Williams retweeted
Italian Sausage recieves congratulatory phone call from the president after winning first sausage race in World Series History.
“Meet Wharton’s Newest Faculty”
youtube.com/shorts/Bq0hq1Fuq…
I know who taught Hanno
A cornerstone of modern economics is that governments respond to incentives, just like other agents, and once they have developed and rolled out a new tool to tax people, they're likely to keep using it, regardless of what the law says. They can't credibly commit to not doing that. And billionaires may understand that governments will do just that.
Thinking about incentives rather than just looking at the text of the law is what economists do.