Ben Polidore's Megablog
The Polidore Rule for the Federal Funds Rate

Using the Taylor Rule estimator in Bloomberg with the following inputs: 

  • Inflation alpha: 1
  • Target inflation rate: 0%
  • GDP alpha: 0

I’m trying to find the “natural” price of objective money and compare that to the Fed’s meddling over time.  This is based on my opinion that no benevolent ruler should be setting the price of money for a society as large as the United States.

Here are the results:

Tim G is on hold with E-Trade tech support for a trade break.

Tim G is on hold with E-Trade tech support for a trade break.

For those of you hoping to see Bernanke go, let me remind you that his replacement will be nominated by none other than OBAMA!  Here is one strong candidate:

Hilarious (via ZeroHedge)

Hilarious (via ZeroHedge)