…year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. To support taking this step, however, I will need…

…wants from pulse to pulse (so every millisecond). The time from activation to detection of a stealthy target should take around 100 milliseconds, an interval of time also known as…

…seems to perfectly encapsulate Nick’s (some-variety-of-)monetarist position: Steve, raising the inflation target is an “action”. Try this: The Fed promises to raise inflation or NGDP to X (target or relative-to-trend…

…real interest rates, achieved in turn with a higher inflation target.” This solution is weak. The inflation target is different than actual inflation. If the inflation target was to be…

…Fed Rate Rule = z*(TFUR2 + LSA2) – (1 – z)*(TFUR + LSA) + inflation target + 1.5*(current inflation – inflation target) z = (2*LSA + NR)/(2*(LSA2 + LSA)) TFUR…

…Here is the Effective Demand rule… Effective Demand Fed Rate Rule = z*(TFUR2 + LSA2) – (1 – z)*(TFUR + LSA) + inflation target + 1.5*(current inflation – inflation target)…

…Now I solve for the inflation target that brings monetary policy into balance with the forces. Look at the horizontal dashed green line of the inflation target. It now sits…

Why is the 2% inflation target sacred ? A very strong case can be made that a higher target would be better, because it would mean normal nominal interest rates…

…It’s true that CMS pays providers within ACOs by FFS throughout the course of the “performance year” in question, but the target for total spending by the ACO for that…

…a ceiling. Of course it did not achieve this target. The only period of on target inflation was due to a 2014 3% increase in VAT which was in fact…