So I've been anxiously waiting for the Steve Forbes "Fact and Comment," where he gives us his take on Ben Bernanke. Mr. Forbes, Editor-In-Chief of Forbes Magazine (best Magazine ever), provides a symposium on pragmatic economics in his Nov. 28th column. Given my "gut" feeling that Ben Bernanke's predisposition to inflation targets, I have been looking forward to Mr. Forbes take.
According to Mr. Forbes, Bernanke is at least progress, but not all the way there:
"He (Bernanke) has advocated adopting formal infaltion targets. This is progress-of a sort. The problem, of course, in targeting inflation is in deciding whitch indexes and market indicators (such as inflation-adjusted Treasury bods) to use. Indexes tell us what happened in the past. Monetary errors don't show up in indexes for at least a year. think of the proverbial tanker and how long it takes for the vessel to change direction after the captain has made the decision to do so."
Mr. Forbes points to the commodity markets - specifically gold - to give a real time indication of whether a set monetary policy is correct. The rest of the column on Bernanke is a great read.
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