## Friday, April 27, 2012

### Tim Duy — Bernanke's Shift

Bottom Line:  Bernanke is being disingenuous in his defense.  Despite his claims that his earlier views only applied to deflation, his writings still appear at odds with his willingness to embrace a new price and aggregate demand paths.  Moreover, the Fed's own forecasts clearly do not support his contention that the target is symmetric, but indeed a hard ceiling.  The Fed must also know that the by reducing the path of inflation they have knowing altered the distribution of outcomes in a way that is likely to slow the pace of recovery. Finally, with inflation near 2 percent, I suspect the bar toward another round of QE is higher than many believe.
Read it at Tim Duy's Fed Watch
Bernanke's Shift
by Tim Duy