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What Macroeconomists Are Missing

Harvard Business Review

The rest of the reading list: " Credit Risk and the Macroeconomy: Evidence from an Estimated DSGE Model ". I'm just saying that policy makers and others who want to understand the short-term movements of the economy should keep their options open. The Bank of England Quarterly Model ".

Banking 13
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The Downside of the Fed’s Increasingly Complicated Expectations Game

Harvard Business Review

When you view this reaction in terms of expectations, it makes a bit more sense. Consider what happened in the mid-1990s, when the Fed raised short-term interest rates sharply in order to stamp out what it perceived as a possible overheating of the economy. It] elevated the long-term asset value expectation.”.

Bond 8
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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

Every day for most of the period from let’s say late 1980s basically through the end of my term, I would get almost every week people predicting that the world was coming to an end. If everyone were wholly rational in their long-term self-interest, there would be no political biases. That the economy was going to crash.