In the last section, the author says Sims of Yale imposed the policies of the modern Fed on the economy of the 1930s and vice versa and that swapping strategies had little effect on the outcome. Written in 2009, the reader naturally assumes the polices being referred to are those Bernanke has followed since Oct 2008. This is NOT true. The only way to tell it is not true is to check the Sims reference to find that Sims' work was published in 1998. Bernanke has radically changed the way the Fed's policies in the last 8 months.
posted by David Hawla
May 5, 2009
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