Wednesday, July 1, 2015

Midweek Market Monetarist Links and Summaries - 7/1/15

Six years, and still household portfolios have not fully recovered normal liquidity levels (David Beckworth) http://macromarketmusings.blogspot.com/2015/06/the-long-unwind-of-excess-money-demand.html
Were policy errors responsible for the break up? David makes this argument in a new working paper: http://macromarketmusings.blogspot.com/2015/06/was-grexit-invevitable.html (and Pethokoukis highlights the summary)

Had he lived longer...would he have provided ample monetary stabilization? (David Glasner) http://uneasymoney.com/2015/06/24/the-great-but-misguided-benjamin-strong-goes-astray-in-1928/

At the very least, these correlations provide more clarity than one country samples (Nick Rowe) http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/06/mark-sadowskis-correlations-deserve-a-response.html David Comerford also responds at his blog.
Doesn't the size of government really matter...for fiscal spending?http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/06/fiscal-policy-and-indifference-about-the-size-of-government.html
For Greece, it was a long time coming: http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/06/bank-walks-and-options.html
Convert and destroy, or print and spend? http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/06/seigniorage-transfers-and-runs-on-common-currencies.html
Waiting for things to get worse is not a good strategy: http://worthwhile.typepad.com/worthwhile_canadian_initi/2015/06/the-bank-of-canadas-stitch-in-time.html

How is the economy going to strengthen further, if the Fed is not intent on actually making this happen? (Marcus Nunes) https://thefaintofheart.wordpress.com/2015/06/24/what-the-fed-wants-the-fed-gets/
One rate move this year...or two? https://thefaintofheart.wordpress.com/2015/06/29/new-con-game-in-town-naming-dots/

Japan's debt is presently too high for other options to suffice (Scott Sumner) Keynesians should have supported the 2014 Japanese tax increase
...but what does this mean for government consumption? Are Keynesians moving towards a consensus on deficit reduction?
A recent cover story for the Economist, sounds market monetarist: When the paradoxical becomes mainstream
What to make of Fannie Mae and Freddie Mac asset sales? Federal Revenue in 2013
With a little luck, a return to drachma and free market reform: Showing your displeasure
What accounts for the difference? The American/European divide on Greece
Is a supply side solution possible? What Greece needs
What does "I told you so" really accomplish? Confirmation bias and bubbles

Scott at Econlog:
In response to a commenter, I don't favor an interventionist monetary policy to fix recessions
There are similarities in these two years, in terms of austerity: 1937 and 2013
What happened to mass transit infrastructure in the U.S.? Why can't we have nice things?
Why the failed welfare states of southern Europe? Europe's soft underbelly
Radical debt reduction would leave room to do fiscal stimulus during downturns: Macroeconomics in small economies

Perhaps the only "surprise" is that it took so long (Lars Christensen) http://marketmonetarist.com/2015/06/27/the-end-game-or-a-new-beginning-for-greece-we-have-seen-all-this-before/
At the very least, Grexit will remove the "monetary straitjacket" http://marketmonetarist.com/2015/06/28/how-the-recovery-will-look-like-when-greece-leaves-the-euro/
Hopefully, Greece will be more fortunate this time than Argentina: http://marketmonetarist.com/2015/06/28/remember-the-corralito-lessons-on-greece-and-argentina-from-the-new-york-times/
What are the mechanisms for sovereign defaults? http://marketmonetarist.com/2015/06/29/we-need-a-mechanism-for-sovereign-debt-crisis-resolution/
And now, http://marketmonetarist.com/2015/06/29/the-race-to-default-is-it-time-for-puerto-ricixt/
Lars takes a look at the latest numbers: http://marketmonetarist.com/2015/06/30/hypermind-prediction-nearly-50-probability-of-grexit-in-2015/

(Mark Sadowski) A simple baseline VAR for studying the US monetary based and the channels of monetary transmission in the age of ZIRP: Part I Part II is here

"There is widening inequality among capitalists" (Kevin Erdmann) http://idiosyncraticwhisk.blogspot.com/2015/06/the-era-of-idiosyncratic-risk.html
Kevin takes a closer look at changes in overtime pay: http://idiosyncraticwhisk.blogspot.com/2015/07/wages-profit-overtime-pay-and.html

The plan is a bit too detailed and technical to be good marketing for the public (Bonnie Carr) https://dajeeps.wordpress.com/2015/06/28/eu-ten-point-plan-for-greece/

The last thing central bankers need to do right now is raise rates (Benjamin Cole) https://thefaintofheart.wordpress.com/2015/06/29/the-bank-of-internal-settlements-proposes-sadomonetarism-to-promote-recovery-higher-inflation-what-greek-crisis/

Justin Irving is reasonably confident the Fed won't go too far astray, in raising rates: http://economicsophisms.com/2015/06/28/raising-rates/

Also of interest:
Lorenzo provides some basics: http://lorenzo-thinkingoutaloud.blogspot.com.au/2015/06/thinking-about-states.html

If banks could make money "out of thin air"...why bank runs? (Tim Worstall) But this is impossible under modern monetary theory!

No comments:

Post a Comment