by Mario Rizzo
An interesting post by Jeff Hummel over at HNN (History News Network) shows that it is difficult to know the status of the “macroeconomy” even in retrospect. This combined with poor forecasting (by Bernanke, for example) suggests a knowledge problem in the implementation of counter-cyclical policy. We may not know where we were. We do not know where we are. We definitely don’t know where we are going.
(HT: Jerry O’Driscoll)