Mar

27

A Quote, from George Zachar

March 27, 2007 |

What follows is from a Mightily Loquacious economist, amid calls for bond rallies and Fed easings:

"Our proprietary measure of 'cyclically sensitive' inflation - what the central bank can actually influence - is running around a 1% annual rate."

Markets should therefore:

1) Rejoice because inflation has been vanquished.

2) Tremble because clearly the Fed has lost control over things if there's such a spread between experienced inflation and "what the central bank can actually influence."

3) Seek out this seer to learn the details of this "proprietary measure."

4) Announce the closing of this quarter's competition for Chutzpah Economist, and award the coveted lead bagel.


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