“It’s a classic, elemental mistake,” he said, one described by the late Nobel economist Milton Friedman as the “fool in the shower.”
The fool turns on the water in the shower, steps in and finds that it’s still cold. So he turns the knob all the way to hot, only to get scalded when the water heats up with a predictable lag.
via ‘Fool in the Shower’ to Give Fed a Scalding: Caroline Baum – Bloomberg.
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