TITLE:
Passage of the Federal Reserve’s Third Mandate
AUTHORS:
Gordon Bechtel, Timothy Bechtel
KEYWORDS:
Axiomatic Venture, Data Science with Real (vs Random) Variables, Discovery of Alternative Truths, Goodness of Fit, Post-Pandemic Era, Shocks to Global GDP, The Livelihood of Nations
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.8,
August
20,
2020
ABSTRACT: The American Federal Reserve’s Board of Governors has been negotiating
with the Congress in order to add a third mandate to their longstanding
missions of reducing unemployment and inflation. Chairman Powell described this
mandate as the mitigation of shrinking GDP. We model this mandate by two
axioms, which reveal American GDP as the sole driver of global GDP. The close
fit of each model demonstrates that axiomatic venture can discover and corroborate truth via distinct pathways. In
view of trade-war and pandemic shocks to GDP worldwide, this third
mandate is now compelling. Congressional inaction will reduce global livelihood
in a post-pandemic era (https://www.federalreserve.gov/newsevents/testimony/powell20190710a.htm).