1. Why does the Fed not push (I'm assuming it does not do it secretly) for Treasury to issue Trillionths in various tenors to create a market in NGDP expectations?
2. Similar question why does the Fed not push for more shorter tenor TIPS. Knowing what bond traders think about inflation averaged over 5 or 10 years is interesting,…
1. Why does the Fed not push (I'm assuming it does not do it secretly) for Treasury to issue Trillionths in various tenors to create a market in NGDP expectations?
2. Similar question why does the Fed not push for more shorter tenor TIPS. Knowing what bond traders think about inflation averaged over 5 or 10 years is interesting, but wouldn't the Fed be better served by know what they think about the next 1 or 2 years?
3. Why does the Fed think it NEEDS to be "confident" about future inflation? Why can't it do what it things best now and undo it in a few weeks if data change? The perception of inertia and public speculation about its own future actions seem to undermine the idea that it is data driven.
Does Fed researchers address these issues? I don't read all the SSRR papers but I don't see them. Has the Fed ever explicitly considered the pros and cons of minimizing the number of "reversals?"
Questions:
1. Why does the Fed not push (I'm assuming it does not do it secretly) for Treasury to issue Trillionths in various tenors to create a market in NGDP expectations?
2. Similar question why does the Fed not push for more shorter tenor TIPS. Knowing what bond traders think about inflation averaged over 5 or 10 years is interesting, but wouldn't the Fed be better served by know what they think about the next 1 or 2 years?
3. Why does the Fed think it NEEDS to be "confident" about future inflation? Why can't it do what it things best now and undo it in a few weeks if data change? The perception of inertia and public speculation about its own future actions seem to undermine the idea that it is data driven.
Does Fed researchers address these issues? I don't read all the SSRR papers but I don't see them. Has the Fed ever explicitly considered the pros and cons of minimizing the number of "reversals?"