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June 4, 2005

Could We Replace Greenspan with a Computer?

   Robert J. Barro, a professor economics at Harvard, in the June 13, 2005 Business Week offers information that could lead one to argue that we could replace Greenspan with a written formula.  He notes that the federal funds rate, set by Greenspan, has been predicatably .7% under the average 5-year Treasury yield.  Could the new Fed Chairman tie the two, absent extraordinary circumstances, and make the federal funds rate more predicatable?

June 4, 2005 | Permalink

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