Jed Harris Nails It

He writes:

I guess Kocherlakota (and Williamson) made a wonderful discovery -- the fed can keep the inflation rate constant by just holding the fed funds rate constant, since the rate of real interest is constant. It's a mathematical certainty! And makes the job so much simpler... wonder why we never thought of it...

Paul Volcker's life in 1979-1982 would have been so much easier if only he had had access to Kocherlakota's and Williamson's brains--NOT!!!