Greg Ip says Bernanke on same page as Evans
November 10, 2011 1 Comment
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.