Dallas Fed Research Director Harvey Rosenblum believes that just as there is a lag time between monetary expansion and inflation there is a similar lag time between asset price collapses and a wider deflationary pressure. He is concerned that the anecdotal evidence and the predictions of economic models don't match:
Like McTeer on Monday, Rosenblum put heavy emphasis on the value of anecdotal information on the economy's health, particularly since long-accepted economic models are proving an unreliable policy guide.
"When they start telling me things consistently that aren't being told by the economic modelers, I've learned the hard way over the years that I need to pay attention to that,"
|Share |||By Randall Parker at 2002 October 02 11:53 AM Economics Political|