(Early) Monday DeLong Smackdown: Larry Summers on how we know more than we...
Larry Summers: Thoughts on Delong and Krugman Blogs: “I think the issue is more on the supply side than the demand side… …If I believed strongly in the vertical long run Phillips curve with a NAIRU...
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A semi-platonic dialogue about secular stagnation, asymmetric risks, Federal...
Sokrates: You remember how I used to say that only active dialogue–questions-and-answers, objections-and-replies–could convey true knowledge? That a flat wax tablet covered by written words could only...
View ArticleMust-read: Stan Fischer: “Monetary Policy, Financial Stability, and the Zero...
Must-Read: Very disappointing to me that both nominal GDP targeting and price path level targeting appear to be completely off of Stan Fischer’s radar: Stan Fischer: Monetary Policy, Financial...
View ArticleMust-read: David Glasner: “The Sky Is Not Falling… Yet”
Must-Read: If you think that there is one chance in ten that the sky is falling with respect to the development of deflationary expectations, then you conclude that Federal Reserve policy is not...
View ArticleMust-read: Martin Sandbu: “Ask the big question on central banking”
Must-Read: Martin Sandbu: Ask the big question on central banking: “Mervyn King and Goodfriend… the controversial decision by the Riksbank to raise interest rates… …We will not adjudicate whether the...
View ArticleMust-read: Ryan Avent: “No Take-Backs: The Fed Makes the Best of the Bad...
Must-Read: Back at the end of last October, when the Federal Reserve decided it was going to hike interest rates in December, there were three reasonably-likely outcomes for the US economy over what...
View ArticleMust-read: Tim Duy: “FOMC Recap”
Must-Read: Once again: if the economy comes in weak, then the FOMC will wish that it had not raised interest rates in December and will find it impossible to induce an offsetting deviation from the ex...
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Must-read: Jed Graham: “The Fed’s Historic Rate-Hike Goof–in One Chart”
Must-Read: The very-sharp Jed Graham has… strong views… about the Federal Reserve’s rather counterintuitive decision to raise interest rates in a quarter at which nominal GDP grew at a rate of...
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Must-read: Martin Sandbu: “Four Takes on the Fed Fumble”
Must-Read: That the Fed would be facing significant chances of recession and would be moving in the opposite policy direction than its peers over the winter was a serious risk of beginning a tightening...
View ArticleMust-read: Antonio Fatas: “A 2016 Recession Would Be Different”
Must-Read: “The years that the locust hath eaten, the cankerworm, and the caterpiller, and the palmerworm…” –Joel 2:25 (KJV). The task of fiscal and monetary policymakers as of the start of 2009 was...
View ArticleMust-Read: Tim Duy: Fed Yet to Fully Embrace a New Policy Path
Must-Read: Tim Duy: Fed Yet to Fully Embrace a New Policy Path: “The Fed will take a pause on rate hikes. An indefinite pause… …The sooner they admit this, the better off we will all be. Indeed, the...
View ArticleMust-read: Tim Duy: “FOMC Minutes and More”
Must-Read: But being “behind the cycle” is good, no? On a lee shore you need more sea room, lest the wind strengthen, no? Tim Duy: FOMC Minutes and More: “The Fed may be turning toward my long-favored...
View ArticleMust-read: Joe Gagnon: “The Bank of Japan Is Moving Too Slowly in the Right...
Must-Read: Joe Gagnon: The Bank of Japan Is Moving Too Slowly in the Right Direction: “Bank of Japan Governor Haruhiko Kuroda’s bold program… …has made enormous progress, but it has fallen well short...
View ArticleQuantitative easing: Walking the walk without talking the talk?
The extremely sharp Joe Gagnon is approaching the edge of shrillness: He seeks to praise the Bank of Japan for what it has done, and yet stress and stress again that what it has done is far too little...
View ArticleMust-Read: Paul Krugman: Living with Monetary Impotence
Must-Read: [And no sooner do I write:] There are three possible positions for us to take now: In a liquidity trap, monetary policy is not or will rarely be sufficient to have any substantial...
View ArticleMust-Read: Paul Krugman: What Have We Learned since 2008?
Must-Read: Paul Krugman: What Have We Learned since 2008?: “Some annoying propositions… …”Complex” econometrics never convinces anyone. “Complex” includes multiple regression. Natural experiments rule....
View ArticleMust-read: Gavyn Davies: “Splits in the Keynesian Camp: a Galilean Dialogue”
Must-Read: Very nice. But why “Galilean”, Gavyn? I do note that in the end Gavyn’s “insider” argument boils down to “we must keep the hawks on the FOMC on board with policy”, which is a declaration...
View ArticleMust-read: Adair Turner: “Are Central Banks Really Out of Ammunition?”
Must-Read: Adair Turner: Are Central Banks Really Out of Ammunition?: “The global economy faces a chronic problem of deficient nominal demand… …But the debate about which policies could boost demand...
View ArticleSocial credit is the answer
Why is it called: “helicopter money”? Why isn’t it called: “expansionary fiscal policy with monetary support to neutralize any potential crowding-out of private-sector spending”? Why did Milton...
View ArticleMust-read: Draghi Day
Must-Read: FastFT: Draghi Day: “Rabobank describes the wild market moves that followed the European Central Bank rates decision and press conference as ‘carnage’… …Whether that’s the ECB’s fault or the...
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