Brayton and others (1997) provides an accessible summary of the role and importance of expectations formation in the FRB/US model. 10 The FRB/US model is unfashionable by current academic standards in that it is not a DSGE model.
Unlike bankers elsewhere, our bankers are sitting pretty ...laughing all the way to the bank, you might say! We do want our banks to be profitable but we do draw the line at supernormal profits. Especially at times like these. When the lion’s share still goes to the lions, we may be asking ourselves a question or two.