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.

Advertisements