The Federal Reserve has been fighting the last war: 1970s inflation. (*Erratum & Corrigendum* We refer to Al Broaddus throughout the show but the quotes we reference are actually by Fed Governor Edward M. Gramlich.)
[Emil’s Summary] Yes! Finally! This podcaster’s long-time goal would be a reality: to make economics erotic again. To tell the world that economists can stimulate. To inform that offshore bankers do it in the shadows. To broadcast that technical analysis has the best curves with those plunging chart necklines. The undulating data and heaving economic activity. Going long Treasuries. Wanting yield. Oh yeah, pile that yield on… yeah, high and deep… yeah, yeah…
Alas, when the new intro copy was handed in for proofreading this podcaster’s confusion was laid… bare. Errata? It’s all about copy-editing. And mistakes. The ancient latin word is plural for erratum, “a correction of a published text.” And indeed, in part three of this episode, the article under discussion was originally printed as, “Inflation Targeting: You Can Me Al”. Wha? It should have been “Inflation Targeting: You Can Call Me Al”.
And that’s not all. Closely related to errata is corrigenda, a plural latin word, “for a thing to be corrected, typically an error in a printed book.” Whereas an erratum is, as a general rule, issued for a production error, a corrigendum is a mistake by the author. And, in part three, Jeff Snider and I introduce Al Broaddus, the former Federal Reserve Bank of Richmond president. And when we segue to a quote about inflation targeting by Fed Governor Edward M. Gramlich, instead of attributing it to Gramlich, we continue to refer to Broaddus! We hope you forgive the erratum and the corrigendum and how we piled them high and deep in this episode… ooh, yeah.
00:05 What does it mean when a central bank says it is targeting inflation?
02:46 Should the Federal Reserve reveal to the public what level of inflation it is targeting?
04:20 If a central bank admits what its target is what happens when it cannot hit the target?
06:24 Who was Al Broaddus? What did Edward Gramlich mean in his speech about inflation targets?
12:50 Why does the Fed bother to target inflation instead of simply targeting money supply?
Inflation Targeting: You Can [Call] Me Al: https://bit.ly/2GKKqYp
Speech by Governor Edward M. Gramlich: https://bit.ly/3jT34M8
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7