Abstract
<jats:p>This study’s formal theory derives an ‘instrumental’ empirical structure which facilitates inferences in respect of the welfare effects of any monetary policy ideology. Implementationally, the new structure facilitates a sequestering of the evolution of a macroeconomy’s _primal quantity problem_ from the evolution of it’s _price dual equivalent_. Using the macroeconomic quantities of the USA, with the monetary authority’s _Monetary Policy Actions_ (_MPA_) latent in the data, the evolution of prices in the USA is shown to have been optimal. Regardless, with the selfsame menu of macroeconomic quantities in tow, the evolution of money growth is shown to have been constrained to be low-growth, time inconsistent, and revolving circularly around a relatively adverse equilibrium. The finding that the evolution of money growth has, uniquely interpretation as the gutting of employment to fund low growth rates then a rehiring of labor as growth increases (a strategy which then does not translate into high growth rates) and the finding that a risk averse Federal Reserve tends to sacrifice future growth potential for ‘safety’ help rationalize study findings. Also relevant is the formal theoretical evidence that the adoption of a ‘_rational-risk incentivization instrument’_ - a fiscal policy instrument - towards the management of a macroeconomy Pareto dominates the adoption of the _MPA_. The robustness of the endogenously embedded forecasting structure - the stylized facts in respect of the perturbations to the U.S. economy that emerged in the years, 1987-1988, 1999-2000, and 2007-2008, are robustly anticipated at least three-years ahead - lends additional credence to the robustness of the new empirical structure.</jats:p>