Fed economist laments “criminally oppressive” social order

A senior Federal Reserve economist has criticized the profession for relying on propositions “that ‘everyone knows’ to be true, but which are in fact blatant nonsense,” including the role of expectations. ‘inflation.

In a Discussion paper released on the Fed Board website on Friday, Jeremy Rudd argued that ideas, including the use of aggregate production functions to provide a good way to characterize the economy’s supply, have failed. “No sort of empirical basis”.