Janet Yellen Gets Cussed Out... Politely
Who could have done this to our esteemed Fed vice chair?!
See, that's how you know it wasn't JDA who did the cussing out.
Robert Waldmann explains via Angry Bear:
First I would like to stress again that I have great respect of Janet Yellen. I try to only critize people whom I respect (my posts show just how respectful I am in general).
So this comment on her use of event studies is really a comment on event studies and not on Yellen in particular. I mainly objected to "Event studies can therefore be helpful." That is not a strong claim and I don't really disagree, but I would add "but not very helpful, because announcements can be declared non events on the grounds that they were anticipated, so conclusions based on event studies depend on judgment -- something which they have in common with conclusions which aren't based on data at all."
More highly respectful verbal abuse after the jump.
Full post here.
I'm not ashamed that I've called her just about every name in the book short of the C word which, well, I refuse to use because even JDA has standards She earned them. With respect, of course.