Wednesday, October 9, 2013

Midweek Market Monetarist Links and Summaries - 10/9/13

For any number of reasons, Scott Sumner gets a lot of agreement in regards to this post:
We are not making progress on the microfoundations of business cycles
Lots of back and forth in the comments section of this post, about monetizing the debt:
A rose by any other name
Arnold Kling picks up part of a phrase in a paper title, with Does the money multiplier exist? and Scott responds to Arnold with this post, Money multipliers, real and imagined
Bill Woolsey also has a substantial response for both Arnold, and Scott:
A valid point indeed from Scott - libertarians should try to determine what governments do best, instead of constantly hating on them: Government shutdowns are not "small government". Nor are they fiscal policy"

As Marcus Nunes notes, sometimes people don't realize what a good job the RBA does to keep Australia out of recession:
Even though the Great Moderation may not have represented "perfect" growth (whatever that is), it certainly didn't feel like the Great Stagnation to me:
Where will Japan go? Marcus also charts the direct relation of the broad money supply (M3) to NGDP:

Lars Christensen has a link for David Laidler's latest paper - Reassessing the Thesis of the Monetary History - in this post:
Marcus Nunes provides some highlights from Laidler's paper:

Nick Rowe devises a model with two equilibria for Paul Krugman:
This made me smile. Brad Delong "set the perfect bait" for Nick by laying out an "implicit assumption too explicitly":
In a response to a Peter Dorman post, Nick replies that most macro models today also depend on current expectations for future policy:

David Beckworth explains how George Bailey was not doing the right counterfactual:
Yields on safe assets tend to rise during periods of QE:
An NGDP level target would help the Fed deal with the fallout of debt default:

David Glasner posts part four of Hawtrey's Good and Bad Trade:
Also, part five:

There is a lot of reaction to a John Hilsenrath article in the WSJ (which is gated), and I believe this is the title: "Tense Negotiations Inside the Fed Produced Muddles Signals to Markets"
Ryan Avent responds:
Responses from Marcus Nunes, Matt Yglesias and Scott Sumner, also here
Tim Duy of Economists View also weighs in:
Fed Watch: Credibility on the Line

No comments:

Post a Comment