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Contents   by Russell Cooper and A. Andrew John  25.7 End-of-
Chapter Material  In Conclusion  A driving analogy is sometimes
used to illustrate the problems of the Fed. In the best of all
worlds, we would drive a car in perfect weather along straight,
wide, dry roads. We would look out crystal clear windows with
complete knowledge of exactly where we are on the road and what
driving conditions are like up ahead. Then, with complete
control over the car, we could adjust speed and direction to
reach our destination.  This is not the right picture for
monetary policy. Instead, the windshield is very dirty,
obscuring current conditions and making predictions almost
impossible. Although the driver is well trained, the connection
between the tools of the car and its direction and speed is
haphazard.  Suppose the driver sees a steep downhill in the
distance that requires some slowing down. Putting on the brakes
will eventually slow the car down, but the delay