Why The Taylor Rule Is Flawed....

Discussion in 'Economics' started by libertad, Jul 24, 2009.

  1. http://www.bloomberg.com/apps/news?pid=20601109&sid=a7cS00ug7huI

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    A correct rate would be that rate which would be justified by a truly free/entrepreneurial market....

    This means having a free market structure with no FED RES...

    What is a free market structure ?

    A free market structure is the resultant acceptable yield on all debt types given a tax free , free market place....priced by those who are also not encumbered by taxes....

    Thus these types of measurements could most likely be more meaningful in a 10/5 C tax environment....

    Case closed....

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    The measurement does not account for Real World measurements even within the context of the article....meaning that it is only useful when there are positive economics....

    But do not worry....politico economics could care less....as their math is comical....
     
  2. at least they give you the freedom of speech !