Jackson Hole Just Happened in Dallas

William White, chair of the economic and development review committee of the Organization for Cooperation and Development Photograph by Andrew Harrer/Bloomberg

… the arguments presented in this paper then logically imply that monetary policy should be tightened, regardless of the current state of the economy, because the near term expected benefits of ultra easy monetary policies are outweighed by the longer term expected costs. Undoubtedly this would be very painful, but (by definition) less painful than the alternative of not doing so. John Kenneth Galbraith touched upon a similar practical conundrum some years ago when he said:

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