Greg Ip says Bernanke on same page as Evans

The Economist

Judging from his remarks to troops today in Texas, it looks like he’s even more hawkish on employment than Mr Evans:

“Supporting job creation is half of our marching orders, so to speak; the other half is controlling inflation,” he said, adding that while high unemployment remains a challenge, he at least expects inflation to remain low for the “foreseeable future.”

So I make the coefficient on employment in Mr Bernanke’s Taylor Rule to be equal to that of inflation. That’s interesting; Mr Evans’ argued that even if it was just a quarter of that of inflation, more QE was justified.

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One Response to Greg Ip says Bernanke on same page as Evans

  1. cioffiba says:

    While I base this on my own opinion and very little factually, this post brings me back to a quote from an article Steven sent out via email recently:

    http://www.washingtonpost.com/blogs/ezra-klein/post/who-were-the-alternatives-to-ben-bernanke/2011/08/25/gIQAF07hvM_blog.html

    “As Yglesias and others often point out, Bernanke seemed much more committed to pursuing full employment and experimenting with activist Fed policy to fight sustained slumps before he became chairman. But one thing we don’t know — or at least I don’t know — is how much of the difference between the Bernanke we got and the Bernanke that many of us would prefer is due to the institutional realities of the Federal Reserve.”

    I personally feel this difference is fairly large. Especially after reading his paper on Japan and his older writings and speeches before he was Chairman of the Fed earlier this semester. Granted this is just my opinion and I cannot argue for its accuracy.

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