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Average-Inflation Targeting, In a Nutshell

August 26, 2020 1 comment

Let the bow-tie set argue about the niceties and the nuances. Here is what I can tell you about inflation targeting so that we can all understand the debate: suppose they changed the rules of baseball in an analogous way.

A new pitcher comes in to the game. He throws a pitch over the batter’s head. His next pitch skips behind the batter. His third pitch sails 2 feet high and outside. His fourth pitch almost hits the mascot.

“Yer out!” barks the umpire. Because the four pitches averaged out to strikes. My questions:

  1. I don’t know that the new rule gives me any greater confidence in the pitcher.
  2. It isn’t clear to me how that rule would help the batter.
  3. Maybe this helps a bad pitcher. But I wonder why a good pitcher would need that rule.

That is all.

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