Christopher Waller’s Inflation ‘Prescience’ Didn’t Much Exceed Lawrence Summers’s

The final Boeing 747 rolled off of the assembly line on December 6, 2022. Forever a legend, it’s always worth mentioning that this marvel of aviation was a consequence of six million different parts produced around the world.

Notable about the globalized nature of the 747’s manufacture was that it was realistically a statement of the obvious. Absent the cooperation of millions of hands and machines, there’s no way that the 747 could have been produced economically enough to exist, let alone rate buyers. Repeat it over and over again that the cost of everything declines the more hands and machines that are involved in the manufacturing of everything.

It’s something to think about as Federal Reserve governor Christopher Waller is described as “prescient” not just by Wall Street Journal Fed watcher Nick Timiraos, but also by UBS chief economist and former Fed staffer Jonathan Pingle. What’s the source of Waller’s ability to perhaps see around the corner? In the words of Timiraos, it was Waller’s “novel economic framework two years ago showing how the central bank could bring inflation back to its 2% target without the usual jump in unemployment.”

About what’s going to be written here, it has to be said up front that to explain the fault in Waller’s analysis we must first accept as real his stomach-aches-cause-chocolate definition of inflation.

Read the full article at Forbes


  • John Tamny

    John Tamny is a popular speaker and author in the U.S. and around the world. His speech topics include "Government Barriers to Economic Growth," "Why Washington and Wall Street are Better Off Living Apart," and more.

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