{"id":143,"date":"2007-09-22T17:50:57","date_gmt":"2007-09-22T17:50:57","guid":{"rendered":"http:\/\/astraea.net\/blog\/?p=143"},"modified":"2007-10-16T06:16:16","modified_gmt":"2007-10-16T06:16:16","slug":"mishkins-band-aid","status":"publish","type":"post","link":"https:\/\/www.astraea.net\/blog\/mishkins-band-aid\/","title":{"rendered":"Mishkin&#8217;s band-aid"},"content":{"rendered":"<p>Will the interest rate cut be seen as prescient salvation or impulsive band-aid in the coming months?  The Fed, it seems, were swayed by Frederic Mishkin who, notes <a href=\"http:\/\/www.economist.com\/finance\/PrinterFriendly.cfm?story_id=9833657\">The Economist<\/a>,<\/p>\n<blockquote><p>argued forcefully in a recent speech that central bankers can cushion the impact of falling house prices on the economy, provided they act quickly and decisively, at little cost in terms of inflation.<\/p><\/blockquote>\n<p>While the markets bounced quickly it is not certain to be sustained and much can happen in the coming months.  Let&#8217;s hope for stability, though our track record is not good and I can&#8217;t help remembering that Enron hired <a href=\"http:\/\/www.astraea.net\/holonics\/video\/EnronTheSmartestGuysintheRoom.avi\">The Smartest Guys in The Room<\/a>.  We shall watch markets and data in the coming weeks to see where the pressure bears  (ha ha).<\/p>\n<p>As always, screening should be selective.  Prefer fundamentals to story.<\/p>\n<p>Further reading: <a href=\"http:\/\/www.economist.com\/finance\/PrinterFriendly.cfm?story_id=9767718\">An essay by The Economist discussing the Fed&#8217;s policy approach<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Will the interest rate cut be seen as prescient salvation or impulsive band-aid in the coming months? The Fed, it seems, were swayed by Frederic Mishkin who, notes The Economist, argued forcefully in a recent speech that central bankers can cushion the impact of falling house prices on the economy, provided they act quickly and &hellip;<br \/><a href=\"https:\/\/www.astraea.net\/blog\/mishkins-band-aid\/\" class=\"more-link pen_button pen_element_default pen_icon_arrow_double\">Continue reading <span class=\"screen-reader-text\">Mishkin&#8217;s band-aid<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[11],"tags":[],"class_list":["post-143","post","type-post","status-publish","format-standard","hentry","category-interest-rates-and-currencies"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4hwcd-2j","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts\/143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/comments?post=143"}],"version-history":[{"count":0,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/posts\/143\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/media?parent=143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/categories?post=143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.astraea.net\/blog\/wp-json\/wp\/v2\/tags?post=143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}