| | | | | With Gulfstreams lining the runway in Jackson Hole, the money engineers and central planners got their annual boondoggle underway yesterday.
The math. The linear models shoehorned to fit a non-linear world. The presumption of control…what’s not to like?
Plus, it’s prime time for the Ivory Tower types to show off finance lingo like “non-accelerating inflation rate of unemployment” (NAIRU), “equilibrium” of all kinds, and a new one — “rational inattention.”
Unfortunately, the Ivory Tower is the only view the wonks in Wyoming have ever had. Besides trading based on inside-the-Fed information, none have a lick of Nassim Taleb’s skin-in-the-game.
Whether the models work or not is beside the point. The point is perception. And the perception among the J-Hole crowd is they can always hatch a new plan.
But because we live in the real world, let’s look at how their plan is going so far…
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