Really interesting nugget, thank you for sharing. My mind turns to how this would interact with the voting rotation of the regional banks. If the Board redraw the boundaries, do the Board also get to give the NY permanent FOMC seat to a new region, and the more favorable rotations to friendly groupings of districts?
Although Section 2 of the FRA gives the Board the power to adjust districts and create new districts, that section limits the number to between 8 and 12. Moreover, whether the Board could move the headquarters city of a district is questionable. FRA Section 12A specifies the order of rotation of the districts on the FOMC, listing the districts by city.
Let's suppose that real growth is possible with deflation, is it the _maximum_ real growth? If some prices are downwardly sticky (more than are upwardly sticky), doesn't deflation lead to greater difficulty in adjusting relative prices to sectoral shocks, that is to unemployment of some resources and less than maximum growth?
Now IF you postulate that there are more upwardly sticky prices than downwardly sticky ones then sectoral shocks suggest a Flexible Average Deflation Target.
The principle is the same. The average target is determined by positive/negative stickiness and the average expected shocks with additional inflation/deflation to adjust to extraordinary sectoral shocks.
The "panic" of 1873-1892
https://thefaintofheart.wordpress.com/2012/05/28/three-panics-and-a-nonevent/
Really interesting nugget, thank you for sharing. My mind turns to how this would interact with the voting rotation of the regional banks. If the Board redraw the boundaries, do the Board also get to give the NY permanent FOMC seat to a new region, and the more favorable rotations to friendly groupings of districts?
Of course. Just like the gerrymandering of Wisconsin or NC state legislative districts.
Although Section 2 of the FRA gives the Board the power to adjust districts and create new districts, that section limits the number to between 8 and 12. Moreover, whether the Board could move the headquarters city of a district is questionable. FRA Section 12A specifies the order of rotation of the districts on the FOMC, listing the districts by city.
Most debates on AI stay at the level of prompts and productivity.
But the real difference is not in prompts — it is in orientation.
AI is never “smart” or “stupid.”
It mirrors the epistemic stance you bring:
• Coherence before knowledge.
• Potentiality before performance.
• Becoming before answers.
This is the epistemic key to AI: using it not as a tool of automation, but as an infrastructure of becoming.
I have unfolded this here:
https://substack.com/profile/110168113-leon-tsvasman-epistemic-core/note/c-154706867
Try some day to write about Bank Indonesia QE, or money-financed fiscal programs, since the pandemic.
Let's suppose that real growth is possible with deflation, is it the _maximum_ real growth? If some prices are downwardly sticky (more than are upwardly sticky), doesn't deflation lead to greater difficulty in adjusting relative prices to sectoral shocks, that is to unemployment of some resources and less than maximum growth?
Now IF you postulate that there are more upwardly sticky prices than downwardly sticky ones then sectoral shocks suggest a Flexible Average Deflation Target.
The principle is the same. The average target is determined by positive/negative stickiness and the average expected shocks with additional inflation/deflation to adjust to extraordinary sectoral shocks.