Fed Confused Reality Does Not Conform To Its Economic Models, Shocked Its Models Predict H

[sailingaway]

Fed Confused Reality Does Not Conform To Its Economic Models, Shocked Its Models Predict Hyperinflation

http://www.zerohedge.com/news/2012-10-03/fed-confused-reality-does-not-conform-its-economic-models-shocked-models-predict-hyp

[MoneyWhereMyMouthIs2]

In short: the Fed's DSGE models fail when applied in real life


lol. That's the exact moment you discard a model.

[Dr.3D]

lol. That's the exact moment you discard a model.
So if the model is defective, then why is it....

the Fed's own model predicts that if the Fed does what it is currently doing, the result would be "explosive inflation."?

That's what Ron Paul and Peter Schiff have been saying right along. It seems the model contradicts itself.

[american.swan]

What exactly failed? We know "explosive inflation" as the article states is coming. Is the failure in the specific time the model suggests? Hyperinflation is on the horizon even the feds models predict that. It seems to me the only failure is in the speed at which this inflation sets in.

[MoneyWhereMyMouthIs2]

So if the model is defective, then why is it....
?

That's what Ron Paul and Peter Schiff have been saying right along. It seems the model contradicts itself.


I don't know. I only addressed the fact that they said their model didn't reflect real life. Not only do you discard it, but you stop calling it a "model" at that point, because it isn't one.

I still expect tons of inflation in the near future. As far as your question goes, I assume a lot of the money isn't making it into circulation. The article is talking about responses to interest rates, and the hyperinflation austrians worry about is based on money supply.