Adding prose to Nick’s poetry
In recent years Nick Rowe has come up with a clever set of metaphors to describe a central puzzle of monetary economics—the fact that easy...
Author : TheMoneyIllusion
Krugman vs. Barro
Paul Krugman has come in for a lot of criticism for this comment : But if you follow right-wing talk — by which I mean...
I consider myself a moderate supply-sider, however . . .
. . . does this look like a supply shock? I’ve seen economists like John Cochrane express doubts as to whether demand-side models can explain...
Central Banks Do Monetary Offset While Denying They Are Doing So
Suppose you asked the Fed the following question in early 1968:LBJ plans to raise income taxes to slow inflation. If he does this will you...
The Fed Struggles To Find The Right Guidepost
The drop in the unemployment rate, however, is something more of a challenge. The Evans rule simply isn’t looking quite so clever anymore. Monetary officials...
China: The Problem Is Easy Credit, Not Easy Money
HONG KONG — Move over, Janet Yellen and Ben Bernanke. Step aside, Mario Draghi and Haruhiko Kuroda. When it comes to monetary stimulas, Zhou Xiaochuan,...
Why History Of Thought Matters
Few modern biologists read Darwin’s original Origin of Species, and even fewer modern mathematicians read Euclid’s Elements. If you want to have a good understanding...
Monetary stimulus and fiscal austerity: Poland >> Latvia >> Greece
Tyler Cowen recently linked to an article comparing the recoveries (or not) in Latvia and Greece. I think the debate over “austerity” is the wrong...
What a difference a quarter makes
Real GDP growth was a surprisingly strong 4.1% during the 3rd quarter. During the third quarter, however, lots of people were quite pessimistic: Here’s a...
Different types of unemployment (it’s not the discouraged workers)
The unemployment rate... by 1.2% in 2013. That doesn’t sound like much, but it’s the third biggest drop in unemployment since records began in 1948...