tag:blogger.com,1999:blog-8702840202604739302.post6665809484696702681..comments2024-03-28T03:38:53.734-07:00Comments on MacroMania: Considerable Time and Patience a Decade AgoDavid Andolfattohttp://www.blogger.com/profile/12138572028306561024noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8702840202604739302.post-2846605437876598422014-12-20T08:17:03.594-08:002014-12-20T08:17:03.594-08:00Yellen was asked about measured pace in the press ...Yellen was asked about measured pace in the press conference. Her response was unequivocal: (paraphrasing) "no way, we learned the hard way not to do that". I was surprised that she was so adamant about it given that the economics jury is still out on whether measured pace contributed to the housing bubble (btw my chapter in David Beckworth's book argues otherwise). <br /><br />On the other hand, everything else Yellen said during the conference would have led the market to believe that measured pace is de facto policy. This is one explanation for why asset prices shot up. I wonder if the FOMC was pleased with this development. I suspect the market's stubborn optimism over Fed intentions is both a blessing and a curse for the Committee. <br /><br />Diegohttps://www.blogger.com/profile/18084671738464414141noreply@blogger.com