Midweek Market Monetarist Links and Summaries - 10/22/14

For the BOC, the promise extends from the past period to the present, but not the future (Nick Rowe) http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/10/paying-back-the-loan-of-forward-guidance.html
No Operation Twist allowed in this set up: http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/10/dumb-questions-about-forward-guidance-in-new-keynesian-models.html
It's very easy to get the signs confused: http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/10/sign-wars-with-price-level-targeting.html
Expectations about "counterfactual conditionals" are just airy fairy! http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/10/inflation-derps-are-people-from-the-concrete-steppes.html

How well does John Cochrane understand the New Keynesian model? (Josh Hendrickson) https://everydayecon.wordpress.com/2014/10/17/in-defense-of-neo-fisherism/
Nick Rowe's interpretation: http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/10/john-cochranes-monetary-policy-with-interest-on-reserves.html

Still scraping bottom with a flawed monetary regime (Scott Sumner) The real problem with Fed policy
When loose lips sink ships...The Fed finally says "enough"
And, Quick update on NGDP futures
Scott highlights recent posts from Ben Southwood and Sam Bowman at Adam Smith Institute

At Econlog, Scott makes some market predictions: It's the economy, stupid
Because of housing, Texas has less poverty: http://econlog.econlib.org/archives/2014/10/housing_and_pov.html
NGDP is a monetary concept: http://econlog.econlib.org/archives/2014/10/nominal_gdp_is.html
Did the Bush tax rebates actually work?

No time for "policy normalization" (Marcus Nunes) http://thefaintofheart.wordpress.com/2014/10/16/are-we-back-in-old-times/
Some never realized that long term growth fell away from its long term trend: http://thefaintofheart.wordpress.com/2014/10/16/plossers-six-year-meme-sooner-rather-than-later/
Bullard sent the stock market on a wild ride this week: http://thefaintofheart.wordpress.com/2014/10/16/bullard-needs-psychiatric-meds/
Oil prices? This time, deflation is involved: http://thefaintofheart.wordpress.com/2014/10/16/oh-my-when-you-reason-from-a-price-change/
Has the implicit nominal target been abandoned? http://thefaintofheart.wordpress.com/2014/10/21/does-israel-want-to-become-sweden/
Escape (from ZLB) as attributable to...WWII? http://thefaintofheart.wordpress.com/2014/10/21/a-faustian-reading-of-history/

Unfortunately the UK is no longer "boring"! (Britmouse) http://uneconomical.wordpress.com/2014/10/17/time-to-take-the-inflation-target-seriously/

Lars Christensen puts together some adaptations:
http://marketmonetarist.com/2014/10/19/time-for-the-fed-to-introduce-a-forward-looking-mccallum-rule/

If only Tyrone had written this post instead of Tyler (Cowen), but alas that was probably not the case. Scott Sumner replies here, David Glasner here, and my response is here.

Labor?? Who needs it...(Benjamin Cole) http://thefaintofheart.wordpress.com/2014/10/17/richard-fisher-declares-class-war-dallas-fed-chief-warns-wages-rising-faster-than-prices/
Confusing logic: http://thefaintofheart.wordpress.com/2014/10/19/professor-john-cochrane-says-chairman-paul-volcker-had-it-backwards/

Tim Worstall defends market monetarism in a Forbes article: http://www.forbes.com/sites/timworstall/2014/10/17/europe-doesnt-have-a-debt-crisis-europe-has-a-monetary-crisis/

Also of Piketty interest:

Bill Gates provides reasonable framing: http://www.gatesnotes.com/Books/Why-Inequality-Matters-Capital-in-21st-Century-Review

"Picking" on Piketty! http://thecolbertreport.cc.com/videos/e301vf/thomas-piketty