Lateral thinking
Over at Econlog a few weeks ago I did a post entitled “How I Think.” I was reminded of that post when reading commenter theories...
Author : TheMoneyIllusion
How low is the natural rate of interest?
I have a new post at Econlog on the natural rate of interest. Here I’d like to suggest that it might be lower than many...
When do the Dems believe in trickle-down?
Here’s my hypothesis: When it comes to microeconomics the Dems are the “stupid party”. When it comes to monetary policy, and just about all non-economic...
The Musical Chairs model in Ireland
Tyler Cowen links to a recent paper by Aedín Doris, Donal O’Neill, and Olive Sweetman, studying wage flexibility in Ireland. This is from the paper:...
Kevin Erdmann on the housing “boom”
Kevin left this comment after my last post: I will just add that if we asked someone to point out where reckless monetary policy led...
What Caused the Great Moderation? And was it sudden or gradual?
There’s a new Vox article by Lola Gadea, Ana Gomez-Loscos, and Gabriel Pérez-Quirós showing that the Great Moderation that began around 1984 is still intact, despite the...
Two types of economists
One type of economist looks at the real world, and notices causal relationships. They notice that central bank policies have a massive impact on asset...
Markets set interest rates
Patrick Sullivan sent me a link to a talk by John Taylor. Around the 15 minute mark Taylor recounts an amusing conversation he was part...
Real shocks vs. NGDP shocks (and their effect on unemployment)
Real shocks are far, far more important that nominal shocks, for long run growth in living standards. But for the business cycle, and especially for...
Wise comments from the ECB
Yes, you read that correctly. Here’s a recent news story: FRANKFURT (Reuters) – U.S. rate hikes could have greater global repercussions than in the past...