Barry Ritholtz commits revenge on the hapless boob.
...economics is to important to leave to just anyone. Even economists.
Towards that end, and to further illuminate our discussion, I suggest the following questions be used for all economic PhD candidates in their qualifying exams:
Starting in 2001, the FOMC started a monetary accommodation that took rates to the lowest levels in over 40 years, and then kept them there for 3 years. Discuss the economic and market impact of these rates. Include commodities, residential real estate, and financial derivatives in your answer.
• Almost the entirety of the economics profession missed the 2008 recession, the worst in many decades, in advance. Why?• Federal Reserve economists prefer to focus on “core inflation,” excluding food and energy. What is the basis of this exclusion? What impact does it have on Fed policy? What might it mean for policymakers?
• In 1997, the Boskin Commission claimed that inflation was overstated by 1.1%. Changes to how CPI was calculated (Substitution, Hedonics) were made. How did these changes affect subsequent Federal Reserve Policy? What was their impact on actual — not BLS measured — inflation?
Plenty more at the link.
(Note to Strupp: your responses may be entered in my combox.)