you listen to the fed yesterday and they're still stuck with this low neutral rate, which is an econometrice philosophy and a demand-side look at the world. and we just saw a major supply side-type election in that tax and regulatory policy is going to do a lot more to goose growth than monetary policy. >> you know, peter, we all would wish we could buy a ferrari. if you had a ferrari and it wasn't running right, would you let somebody work on it who's never really touched one but has looked at all the schematics? >> i get where you're going and i'm happy that hopefully growth will be driven more by the private sector and not monetary policy and academia. >> quickly, before we finish up, in a nutshell, how do you think the fed should proceed with regard to how the markets moved after the election and how it's moving after yesterday? >> well, unfortunately, the fed is in a no-win situation because if they continue to go gradually in raising interest rates, even if they raise three times, if that's not enough relative to where inflation and growth is going, the bond market will do it for them

knows what else can am it -- knows what econometrics is all about. we should expect a causality from innovation to income inequality. -- is it that innovation when you make innovation, you make friends. those friends take you to the top. individual inventor -- when do you innovate? are very likely to move to the top income bracket. that is knows a prize. -- that is no surprise. skype did not exist 20 years ago. the face-off of income inequality. i have colleagues and friends innovation does not exist. that the only source of income is because you are -- you have the hotel and monopoly and you become rich. but that is not true. why is innovation from other sources of income inequality. income innovation generates growth. that is what we can show, and that is what we do in this paper. -- you that innovation show a causal link between innovation and income inequality. i told you that the new replaces the old. innovation, it enhances social mobility. it is good for productivity. innovation does not increase income inequality. various stages of the u.s. o