Comments on: The Persistence of Deflationist Psychology https://inflationwatch.drduru.com/the-persistence-of-deflationist-psychology/?utm_source=rss&utm_medium=rss&utm_campaign=the-persistence-of-deflationist-psychology Watching for inflation here, there and everywhere Sat, 11 Apr 2015 23:32:13 +0000 hourly 1 https://wordpress.org/?v=7.1.4 By: Dr. Duru https://inflationwatch.drduru.com/the-persistence-of-deflationist-psychology/#comment-212 Sat, 11 Apr 2015 23:32:13 +0000 https://inflationwatch.wordpress.com/?p=2184#comment-212 In reply to The Arthurian.

The Fed must start with expectation because it does not want to over-react to existing conditions. The Fed is definitely not in a state of expecting what is will always be. It is still hopeful that a self-sustaining recovery will show itself…

]]> By: The Arthurian https://inflationwatch.drduru.com/the-persistence-of-deflationist-psychology/#comment-211 Fri, 10 Apr 2015 09:14:05 +0000 https://inflationwatch.wordpress.com/?p=2184#comment-211 There is so much focus on expectation, and so little on the evidence at hand.

“In practice we have tacitly agreed, as a rule, to fall back on what is, in truth, a convention. The essence of this convention — though it does not, of course, work out quite so simply — lies in assuming that the existing state of affairs will continue indefinitely, except in so far as we have specific reasons to expect a change.”

]]>