tag:blogger.com,1999:blog-1110014885778996459.post8192515998465531138..comments2024-03-28T11:48:09.419-07:00Comments on Idiosyncratic Whisk: Housing: Part 283 - Lot size and construction costKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1110014885778996459.post-24487508914137867042018-02-06T19:35:40.229-07:002018-02-06T19:35:40.229-07:00Well, yes and no on the FOMC.
The monetary policy...Well, yes and no on the FOMC.<br /><br />The monetary policy discussion today is owned and framed by the tight-money crowd.<br /><br />It is like having a discussion about the national ethanol as fuel policy at the USDA or defense spending at the Pentagon. <br /><br />Or like when you discuss the "housing bust" against the deep and vast backdrop of conventional thinking. <br /><br />Most of the regional president FOMC members were and are honking for tighter monetary policy, as reflective of the financial communities in their regions and also nationally. The Board of Governors and the chair were for tighter money right into the teeth of the 2008 recession, and only then relented. <br /><br />I do not know what the "median voter" would say about monetary policy. In my last 10 years in L.A., I was very interested in monetary policy. I never met one person who wanted to discuss the topic. <br /><br />Sure, if you ask a person, "Do you dislike inflation?" they will always say so. <br /><br />The question is never asked, "If the price of robust economic growth is 3% inflation, Is that okay?" <br /><br />Re lot size; Love your work on it. I wonder though---property is endlessly entangled with zoning and regulations.<br /><br />What if the prevailing idea among city planners in the past was that, "About four houses per acre is good." <br /><br />At some point, city planners at annual meetings and in trade pubs migrated to "about eight houses is doable in today's economy." <br /><br />A few bold city planners tested out the idea of eight houses per acre and it worked, and instant slums were not produced and property values held etc., and city managers were not fired, so slowly the field accepted eight houses per acre. <br /><br />This is they way they think about it. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-24915156909064712242018-02-06T10:48:06.780-07:002018-02-06T10:48:06.780-07:00The FOMC has consistently pushed for more accommod...The FOMC has consistently pushed for more accommodation than the median voter or expert would have demanded, as far as I can tell. The overwhelming complaints against them have been complaints that they implemented stabilizing policies or that they waited too long to destabilize. I'm not sure that the FOMC is the problem.Kevin Erdmannhttps://www.blogger.com/profile/07431566729667544886noreply@blogger.comtag:blogger.com,1999:blog-1110014885778996459.post-62986517837769255602018-02-06T08:33:27.964-07:002018-02-06T08:33:27.964-07:00But, the public wouldn't stand for it. There ...But, the public wouldn't stand for it. There would be near unanimity that the Fed and regulators were creating new asset bubbles with loose money and reckless credit, the Fed would be pressured into hawkish policy postures until prices and housing starts declined--KE<br /><br /> I agree with this post. Still, it seems that the Fed is acutely to hawkish criticism. <br /><br />What if the FOMC had permanent seats for industry, construction and labor?<br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com