My copy of the OED sites for economy:

4. Careful management of resources, so as to make them go as far as possible.

a. with reference to money and material wealth : Frugality, thrift, saving. Sometimes euphemistically for Parsimony, niggardliness.

1670 Cotton Espernon 1. 11. 62 Men have ... been very liberal in their censure of the Duke's Oeconomy. a 1674 CLARENDON Hist. Reb. x. (1704) III. 88 Nor was this Oeconomy well liked even in France. [...]

etc etc etc.

Admittedly, my edition is rather dated now. But surely they have not retracted so many references.

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Sandbu: We are supposed to HAVE a Leijunhufvud based theory of the natural of inflation (the rate that maximizes real income subject to expected shocks requiring changes in relative prices when some prices cannot adjust downward). The Fed supposedly estimated it at 2% PCE, but recognized that extraordinarily large shocks -- COVID/Putin -- require a FAIT. Now it just needs to figure out ho to set policy instrument values at levels to achieve its target.

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Yglesias: One thing, Maximize net present value using social values.

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"Natural rate of inflation"? P*?

It's the rate that allows some other important rate to remain stable. But which one? If it's wage inflation, then it's just the Phillips Curve backwards. We have that theory, fwiw.

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