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Federal Reserve Bankers Victoriously Declare Defeat!
A Benjamin Cole post Speaking in Beijing a few days ago, Chicago Federal Reserve Bank President Charles Evans said economic stagnation is the new normal and so he sees slow inflation, interest rates...
View ArticleThe genius that was Milton Friedman
Going back over old posts, I found one from 6 years ago that covered Milton Friedman. That was in Portuguese, and here I have more. This is taken from the Q&A following Friedman´s Keynote Address...
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“Heads or Tails”
From a recent Vox post: “The tail that wags the economy: The origin of secular stagnation”: The Great Recession has had long-lasting effects on credit markets, employment, and output. This column...
View ArticleTwo presidents and a governor
A James Alexander post In the last day of public comments by FOMC members before the whole committee entered purdah the market was treated to three separate statements. Kashkari First off was Neel...
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Toying with business cycle dating
In this year´s ASSA Annual Meeting in January, Christina & David Romer (R&R) presented “NBER Business Cycle Dating: Retrospect and Prospect”: “…Our most substantial proposal is that the NBER...
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The workings of the monetary ‘thermostat’ during the Great Depression
George Selgin is writing a series on “The New Deal and Recovery”. In the Intro (where you find links to the five ‘chapters’ written so far), he summarizes: “I believe that the New Deal failed to bring...
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If only monetary policy in 2008 had been what it was in 2020.
Many like to compare the Covid19 contraction with the Great Depression. In addition to the nature of the two contractions being completely unrelated, while in the first two months of the Covid19 crisis...
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A “simple solution” to the Fed´s new AIT framework
The first thing to note is that inflation is not a price phenomenon (don´t reason from a price change is relevant here), but a monetary phenomenon. For example, changes in relative prices (due to an...
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Irony alert: The Fed has been doing AIT for three decades!
As I will show, it has also been doing NGDP-LT, albeit with a “variable” Level Trend. It´s amazing that it took them one and a half years to come up with a framework that had been in place for so long!...
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Is the new Monetary Policy Framework (AIT) an improvement?
Unlikely. Also, it´s likely not worse and suffers from the same shortcoming of inflation targeting, being based on the false premise of the existence of a Phillips Curve. I plan to show, hopefully...
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