CFI book2 P91 Question 2 If Fed change rate unexpected. the answer is “if only” why not cetris paribus. I am confused by these two.
if only is related to inaction, in that case, the Fed changed the rates and didn’t do what that overconfident economist expected, and should be considered to be an inaction; for the cetris paribus, it’s more related to the unexpected action. In this case, though it’s a bit “unexpected” but more like “Fed hasn’t done what they should have done”. hopefully this clarifies.