A busy week, for Scott Sumner - Why bitcoins aren't actually money
An interesting post - Does planning explain prosperity?
When you get caught between the moon and another MM - New Keynesian debate...starting New Year's day, no less! Krugman overlooks the smoking gun
I like Patrick Sullivan's comment about financial innovation at 11:33 in this post - John Cochrane on money/macro
It's been a good year for Market Monetarism - Diogenes never met Joe Wiesenthal
Does "updating one's priors" count as a good New Year's resolution? Is Paul Krugman a Bayesian?
Another take on How does market monetarism differ from new Keynesianism? Commenter "dtoh" also offers a "quick and handy" reference guide at 8:44.
At least Delong considered benchmark levels. But the use of RGDP only further distorts them: Brad Delong hasn't done his homework
Also, Scott Sumner's posts at Econlog this week: http://econlog.econlib.org/archives/2014/01/dont_follow_the.html
Reduce bubbles with budget deficits? http://econlog.econlib.org/archives/2014/01/heres_larry_sum.html
Bill Woolsey explains some of the differences between shadow and conventional banking
No test really happens until nominal targeting is adopted. And in all this, levels matter:
The "Test" of Market Monetarism
"The theoretical framework of Market Monetarism is that spending on output depends on the quantity of money and the demand to hold it. And the quantity of money should be adjusted according to the demand to hold money given a level target for nominal GDP." Market Monetarism vs. new Keynesian
Governments...banks...codependency? (Nick Rowe) http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/01/nominal-loss-aversion-and-its-consequences.html
Where Nick Rowe's thoughts about banks, according to Bill Woolsey, are either "wrong or wrong headed"! http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/01/media-of-exchange-and-the-clearing-house.html
Why name a target and then consistently hit below it? (Marcus Nunes)
When policy makers try to control prices directly...
Will 2014 be the year that levels are reconsidered?
Has the Fed given up on a robust recovery?
In graphs - the real difference in this recession: http://thefaintofheart.wordpress.com/2014/01/07/the-real-test-of-market-monetarism/
The Weidmann rule is a recipe for deflation (Lars Christensen)
Some Argentine economists are familiar with deadweight loss. Help!
See, this wasn't about a currency war after all...
Tick, tick... http://marketmonetarist.com/2014/01/07/one-step-close-to-euro-zone-deflation/
2013 - the year the Sumner Critique became political - http://dajeeps.wordpress.com/2014/01/07/a-test-of-market-monetarism/
Microfoundations should be making new and better predictions than we were making without them (David Glasner) http://uneasymoney.com/2014/01/02/the-microfoundations-wars-continue/
David Beckworth follows Paul Krugman's instructions and gets a surprising result:
James Pethokoukis is concerned: Which of these 3 charts makes it seem like a smart idea to end emergency jobless benefits?
JP Koning's take on QE and deflation: http://jpkoning.blogspot.com/2014/01/does-qe-actually-reduce-inflation.html
Does Larry Summers think that monetary stimulus is "bad for society"? (Ryan Avent) http://www.economist.com/blogs/freeexchange/2014/01/secular-stagnation