What Samuelson said was this, “I’d rather have Bob Solow than an econometric model, but I’d rather have Bob Solow with an econometric model than without one.” And Samuelson, who was a shameless eclectic, would almost certainly have said essentially the same thing about policy rules. Thank you. - 14 References Bernanke, Ben S. (2007).
Though those situations are interrelated, an improvement in expectations for economic growth – as described in situation (2) – may be essential since it could exert a favorable effect in both situation (1) and situation (3), thereby setting the stage for stable price increase (charts 19 and 20).