House of Paine

big ben booms

 here's a taste of ben 
the  elite 
     popularizer/explicator  

after the greenstain's 
 squiggly newt 
     double talk
its at least ......
well..... a dry weave 



============================


from a speech he gave
a couple years back  
while still a minor fedskin:



"Much of the analytic framework
 used by the [Federal Reserve] staff
can be summarized 
by an expectations-augmented Phillips curve
 of the type 
implied by the work of  [Ned] Phelps (1969)"

-------- hows that folks
       a balls to the wall
                   model 
running on 
  a 35 year old motor design 
that was draft up
by a guy 
later 
  passed over for a jb clark.... ---------

" further augmented by measures 
of "supply shocks," 
as suggested for example
 by the work of Robert Gordon"

----- quote:

"bob gordon ain't no
flash gordon" 
           jim tobin 
                      ------------

" This model is familiar
 from many textbook treatments"


 ------ yup
our fed skins pulled 
their  basic 
credit policy guide
 right out of a sophmore's book bag---------- 

" In addition, the  fed's model 
includes dynamic elements
 in order to capture aspects
 of expectations formation
 multi-year contracts
 and other factors...."

------ can you say...
window dressing 

as in
  glass pipes

 tail fins

and twin framus buttons ...-------

--------okay
 so hows she drive ????
he skips to what happens 
when the fed crunches credit flows ---------

 
" aggregate demand 
 goes  below potential output
 creating  a positive output gap..."

---  now watch why this is kool fed wise ...-----------
 
" the rate of increase 
in labor compensation 
and other input costs
 should slow,...."

-------- BOING ---------------

"firms should be less able
 to pass price increases..."

------ DICEY BUT NICEY 
BUT ULTIMATELY SOO 70'S 
WAGE PUSH  PROFIT SQUEEZE 
 PRICE SPIRALING 
IS AN OLIGOPOLISTICLY STRUCTURED
 CLOSED SYSTEM CHARACTERISTIC

NOT POSSIBLE  IF 
THE FIRMS
 CAN'T PASS THRU
CAUSE OF ... MARKET PRESENT
             FOREIGN COMP ??? -------------

 
"Of course, this model, 
like any model,
 will have an error term, 
which represents a portion 
of the behavior of inflation 
that we can't reliably explain or predict...."

----- ERROR TERM ???

TRY FUDGE VARIAIBLE 
AND IT AIN'T RESIDUAL BABY
ITS BIG AS A HOME COMING WAGON -------------------


---but  after playing 
it ( sense wise)
pretty straight  
(if wage nasty )
so far 
note  below how 
he runs thru 
this curlie cued patch 

 say ya want an  involution
               wwww.. ellllll  ...------

"  I did not include money growth 
in this list of inflation determinants...."

 ------- here it comes .... MALTED MILTY  -------

 "Ultimately, inflation 
 is a monetary phenomenon
 However, 
no contradiction exists ..."

------(by leaving out 
  MONETARY PHENOMENON ----------
 
" the expectational Phillips curve 
is fully consistent 
with inflation's being determined
 by monetary forces ..."

------ BEAM ME WAY FORWARD  SCOTTY -----------

"in the long run"


----------  yes sir
 you're correct sir

since  anything 
 that doesn't out right 
derail 
the  market system entirely 
will ultimately look like 
its consistent 
with hume's  
quantity theory(qt) 

after all
  " enough time"
  makes the qt into
a tautology ...
  right??  chum ----


 "this  has been demonstrated
       in many textbooks
 and so I will not discuss it further here"

-------- no comment 
beyond this:
          read a text book 
written pre '29 
do u find
  models
applicable 
 to 
the great depression ???---------------

" I only note that.."

------ always watch out 
for what comes after an "only" .... ------------

 "as an empirical matter"

-------- and even more 
for what comes after 
"as an  empirical matter "...---------- 



"instabilities in money demand

------ ie actual velocity is not constant ------------

 financial innovation

------ new  credit
   intruments 
can seriously alter
    the velocity capacity -------
 
and many special factors
 affecting the monetary aggregates...."

----- 
special forces as in..
a fudge basket 
 now 
is thatenough  "only"  for ya ???----------

 "make them 
   relatively poor 
predictors of inflation 
at medium-term horizons"

----- for "relatively "
           read "piss" ---------- 

------ why medium ??
cause its not just short term
in fact serious velocity "divergence"
                   can last a decade --------


" For this reason
 the role of the money supply
 remains 
   implicit 
       in this discussion... "

------ implicit 
     as in absent and without effect

the maulting of  St Milt is complete -----------


------------------------------

MY SLANT ON THIS TEXT

 THE GUYS A WALLY CREEP

BUT NOT A SNAKE OILER
 LIKE GREENSTAIN

DESPITE ALL THE GESTURING TOWARD THE TEXT BOOKS
LIKE THEIR THE OLD OAKEN BUCKET
OF RELIABILITY FAME 

HE'L  JOB DRAIN  US WAGERY GEEPS
                  WITH
           IN THE NAME OF 
   " CUTTIN EDGE  IVY SCIENCE "

LIKE THEM
 TOP 18TH CENTURY  COURT BLOOD LETTERS