The “Long And Variable Lag” – A Dangerous Monetary Policy Myth
Fed rate increases can't demonstrate the ability to "tame" inflation. Milton Friedman's "lag" is the conceptual crutch that is invoked to explain this ineffectiveness.
Fed rate increases can't demonstrate the ability to "tame" inflation. Milton Friedman's "lag" is the conceptual crutch that is invoked to explain this ineffectiveness.