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When Economists Navigate by the Stars
Monetary policy is often likened to steering a ship. For instance, the key economic policy concept of "commitment" is often visualized as Odysseus listening to the Sirens' call while tied to the mast of his ship; analysis and interpretation of the data often seems like the process of navigation by the currents, the wind, and the sky. Indeed, Fed Chair Jerome Powell suggested in August that monetary policymakers are frequently "navigating by the stars under cloudy skies."But what good is celestial navigation if the navigator cannot see the sun or the stars because of clouds? The Vikings, ...