by Bill McBride on 5/13/2005 12:57:00 AM
Friday, May 13, 2005
Dr. Mark Thoma has convinced his colleague, Dr. Tim Duy to write a regular piece on the Fed at Economist's View. Before going to the University of Oregon, Tim was an International Economist at Treasury and a Fed Watcher for The G7 Group, a private consulting firm.
Dr. Duy's first piece is up "The Art and Practice of Fed Watching" and offers some great advice, like:
The secret to remember is that Fed Watching is not about your interpretation of the economy or what you would do if you were a Board member. That approach will lead you down a bad road. The secret is to interpret the data as the Fed sees it, and remain agnostic about whether the policy is wrong or right.And about the housing bubble:
... there may in an asset bubble in the housing market, but don’t expect the Fed to react to that, at least not before it bursts.A very valuable addition to the econ blogosphere.