Author : TheMoneyIllusion

There’s a lot of interest in the recent moves by the Abe administration to push for faster growth in Japan.   Paul Krugman’s comments :...

Here’s Paul Krugman : That said, as Neil Irwin points out in the linked article, it’s not clear how much difference it would have made...

Saturos directed me (via Mark Thoma ) to this post by David Altig : In the post on NGDP targeting I was in fact thinking...

Standard economic theory predicts that monetary stimulus boosts inflation, which helps debtors.  More specifically, it reduces the real value of outstanding debts.  The nominal interest...

Evan Soltas sent me the following Jim Cramer blog post , from the day I referred to in the previous post: TheStreet.com’s Jim Cramer says...

Or should I say the nominal problem . . . There’s been a lot of discussion of the release of the 2007 Fed minutes.  I...

More evidence that the so-called liquidity trap is not a trap at all: The yen hit a fresh 2-1/2 year low on Friday and was...

I suppose I should not have been shocked.  Economics is full of obvious truths that sound odd when expressed in an unfamiliar way.  Everyone knows...

There is an interesting debate taking place over the issue of whether we are in a new world, where monetary injections will no longer create...

In the comment section of a recent post, people reacted with shock to my claim that, holding the monetary base constant, higher interest rates are...