Mike Shedlock
Mish’s Global Economic Trend Analysis
November 9, 2020
- A d v e r t i s e m e n t
- {openx:49}
Ben Bernanke and the Fed have great belief in academic models whether they make any real world practical sense or not.
Indeed, Bernanke’s reliance on formulas instead of common sense is what told him there was no housing bubble, that unemployment would not get above 8.5%, and that Quantitative Easing in massive force would cause the unemployment rate to drop. He was wrong on all counts.
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Nonetheless Bernanke is sticking to his models. With a hat tip to Zero Hedge, here is yet another article from the Fed (not Bernanke), that places great reliance on academic formulas. The article concludes structural unemployment is “likely to be transitory rather than permanent”.
