Re Roger’s post: who wants to be rational when you can play with the biggest train set in the world?
As Kohn put it last week:
‘We will really know the answers only ex post, after the final chapter is written on the current business cycle and after numerous data revisions provide us with a better fix on the behavior of productivity. As policymakers, of course, we don’t have the luxury of waiting for the outcomes and revisions. We are weighing probabilities in the here-and-now, given incomplete information. That is what makes policy so much of a challenge--and so much fun--at least for an economist....’
Ye Gods!
