Better forecasting or better rules?

Article Abstract:

The Federal Reserve requires a good economic forecasting program to achieve the goals of as stable prices, stable exchange rates and optimum production mandated by Congress. However, a perfect economy cannot be accurately forecast, and the Federal Reserve cannot override the business cycle. Fluctuations in the exchange rates and a negative balance of payments situation pressure the Federal Reserve to rely too heavily on monetary policy. A stable monetary policy with a goal of zero inflation offers economic advantages.

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On foot-loose prices and forecast-free monetary regimes

Article Abstract:

Leland Yeager is justified in his suggestion that the forecast-dependent monetary policy is redundant and must be replaced by a forecast-independent alternative. He believes that the present policy must be replaced by a stable price-level regime, rather than a productivity-norm or a stable money-income (MV) regime. The MV regime stabilizes the demand or profit forecasts regarding changes in productivity, while the productivity-norm does not resolve price deflation.

Economic policy

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The case for market-based forecasting

Article Abstract:

Markets can provide information and are useful for the formulation of governmental policies. They are vital for policy making, rule making and forecasting, and can be used in the forecasting of inflation because market prices of gold and other commodities are accurate price indexes. However, econometric models have failed repeatedly as they are not physical sciences and human behavior is not static.

Economic aspects, Capital market, Capital markets

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