House of Paine

nearly rational corporations

woodford's latest oracle :


or 
what happens to price setting
in response to  announced and anticipated 
         fed policy
when not only 
              expectations matter
but they ain't quite rational

here 
on the ever klass slippery  
                      policy slopes 
                         of  profit max amerika  .........


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


so this bull takes on the perturbation study 
of the region around 
rational and therefore predictable
 corporate price reaction:


turns out in this woodford model

same as it ever was

whether rational or merely near rational

procrustes bed rules supreme 

like all ivy math 
its 
policy implications
yield  
what else


a pro profit tilt 

let me predict something

as the willy wonks drive 
 their math rigs deeper and deeper
 into this wonderland ...

it will end
 witha new container 
  for 
  the same old medicine show snake oil 

RE.... near RE ....

far side of RE 

 RE lost
 over  the horizon of loco foco FUDDLEDOM 

whatever 
the algebra will mean the same simple simon remedy 

when the finest latest most ingenious  
panglossian  formalities
are 
    converted into policy  prescriptions 

they'll all turn  out the same


ivory tower beauty queens
  morph into   
ugly  gubmint 
            wage brakin'    goons 
           on their way to the market place 

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

but hey
its " sound  practical  social science "


long as 
the model spitz out ...

a new trail to higher profits

a better bottom line  algorithim 

its" sound practical social science "

------------------
on a personal note:


i tired of these 
thru the looking glass
jabber jabbers  way back in  grad school 

despite all their latest  mathoid foppery
these latest models 
   remain avatars 
of the same old 
        skunk the 'umble toiler con  

many paths  fresh and bright
           but still only one peak point 

max the  throttle on nominal wage growth 

do that boyz and girlz
and 
by hook or by crook 
 all will end well 

during my dismal tour of duty
        (ie for more then 
                        30 years now )
its been this type of academic stymie 

                            an  expectations based
                                             policy Rx 
that sprinkles
 the best of all possible holy waters

over a set up
that has joined 
 galloping per jobster productivity rates 
with 
 crimped striding  wage rates 
--------------------------------

sum up:


is this woodford paper
    paper 
nobel quality ???

maybe not


but 
 it sure as hell
makes for nice 
     well rewarded slight of hand 

 once you learn to
 hold u're nose 
              while  you're doing it