The New York Times prediction on how Janet Yellen will run the US moetary policy is something you should read.
Here is what they stress:
"[...]in public speeches and academic work, she has suggested that the Fed should be more systematic, predictable and transparent — in short, that it should lay down some rules and stick to them. It is a template that Wall Street likes, and one that underscores the Fed’s departure from the days of Alan Greenspan, its chairman from 1987 to 2006, whose Delphic pronouncements were endlessly parsed by economists and investors."She is all for transparency and relatively simple rules.
Note the difference between decision-making at the White house and at the FED, stressed at the end of the article:
“The Fed meets every six weeks and makes usually one big decision after careful forethought and research,” the colleague said. “The White House meets every day and has 18 million things to deal with.”So a careful, deliberate approach is what is needed at the central bank.
In case you do not know what Delphic means, check out this download:
http://curiyo.com/It installs as an add on to your browser and allows you to find things quickly.
Oops, it does not work on the blog, for some reason. But it works on many other sites
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