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The Downside of the Fed’s Increasingly Complicated Expectations Game

Harvard Business Review

And in fact the prices of the particular financial assets that the Fed announced that it will buy less of, Treasury bonds and mortgage-backed securities, did drop slightly on the news Wednesday. When you view this reaction in terms of expectations, it makes a bit more sense. It] elevated the long-term asset value expectation.”.

Bond 8
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What Alan Greenspan Has Learned Since 2008

Harvard Business Review

I had an idea of constructing a certain statistical procedure. Every day for most of the period from let’s say late 1980s basically through the end of my term, I would get almost every week people predicting that the world was coming to an end. The trouble is if you’re at the Fed you can’t do a lot of research.