tag:blogger.com,1999:blog-6616959642391988608.post796358173383250912..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Commodities are still cheapScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6616959642391988608.post-20626122409107932432009-10-14T10:35:01.953-07:002009-10-14T10:35:01.953-07:00I don't think you can rely on any one method t...I don't think you can rely on any one method to determine if the Fed is tight or not. I look at all the indicators and then come to a conclusion. The Taylor Rule can certainly be useful, and I should have included it, but in a way it is redundant if you use the other market based indicators.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-62652001725758106132009-10-13T18:36:15.164-07:002009-10-13T18:36:15.164-07:00Thanks Scott. I was interested more in the quanti...Thanks Scott. I was interested more in the quantification than the CB speak. There are other ways, e.g. by measuring policy vs. a Taylor Rule.__https://www.blogger.com/profile/18426730906924848636noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-22118826347908672052009-10-13T09:03:13.515-07:002009-10-13T09:03:13.515-07:00Good question. There are lots of ways to define ti...Good question. There are lots of ways to define tight money, and I think all need to be present. To begin with, the Fed will tell you if they are tight or not; if they are trying to bring down inflation or not; if they are trying to fight inflationary pressures or not. Another way to tell is to look at real short-term interest rates, which are almost always above average when the Fed is tight, Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-21700467414797511722009-10-13T06:15:14.662-07:002009-10-13T06:15:14.662-07:00How are you defining 'easy' or 'tight&...How are you defining 'easy' or 'tight' money?__https://www.blogger.com/profile/18426730906924848636noreply@blogger.com