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Showing posts with label the Fed. Show all posts
Showing posts with label the Fed. Show all posts

02 September 2010

Markets Are Irrational

The Fed could be transparent about the models it would use to trigger action, but such transparency would in effect be a tipping-of-the-hand, allowing gamesmanship. If markets truly were rational, this wouldn't happen. As it is, though, there is no invisible head attached to the invisible hand.