Blog - Page 2 of 12 - Philosophy of Money

The Bank of Japan is testing Romer’s hypothesis

24th September 2016

Economic History, Monetary Policy, Theory & Other Problems

Has the last thirty years of macroeconomics been a waste of time? World Bank chief economist, Paul Romer, has again written a very important critique of modern macroeconomics – or more specifically the academi...

Fiscal subservience – a reply to Chris Sims

Eric Lonergan

16th September 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

Chris Sims is a deeply thoughtful economist and his paper at the recent Jackson Hole conference has rightly received a lot of attention, notably from Gavyn Davies, in the FT, and Paul Krugman. It is simultan...

There is no r*

Eric Lonergan

13th September 2016

Monetary Policy, Theory & Other Problems, Uncategorised

Like many economists, I have been trapped into thinking that there is an equilibrium real rate of interest - a level of the policy rate consistent with stable inflation, a closed output gap, or full employment....

Brexit: everyone got it wrong

Eric Lonergan

6th September 2016

Austerity, Economic History, Sample Of One

'Brexit' means brexit. Why do I have a feeling some Leavers will end up saying 'we never left', and some Remainers will say the same. The opposite is also likely. Some Leavers and Remainers will agree: Brexit d...

There is no shortage of safe assets – a short proof

Eric Lonergan

23rd August 2016

Definitions of Money, Finance & Asset Pricing, Theory & Other Problems

Safe assets are bunds, treasuries, gilts, JGBs and other government bonds issued by large developed economies. In one sense, they actually are ‘safe’ assets. They are typically negatively correlated with risk a...

Institutions matter

Eric Lonergan

21st August 2016

Definitions of Money, Economic History, Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

13

The monetary & fiscal distinction revisited Monetary policy involves changes in the supply of base money and is carried out by central banks. Fiscal policy involves taxation, spending and transfers carried o...

Eight pitfalls to avoid in the helicopter money debate

Eric Lonergan

19th August 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

15

Learn first, then teach Professors Stephen Cecchetti and Kermit Schoenholtz are the latest to opine on the subject of helicopter money. It is worth quoting from their opening paragraphs, it frees me up to re...

The Best of Brexit

Eric Lonergan

7th August 2016

Economic History, Sample Of One

5

The Best of Brexit Perhaps the best thing to have come out of Brexit has been the writing. So here is a collection of my personal favourites. There are serious omissions - so feel free to suggest additions i...

Monetary policy & babysitting: why rates are so low, and ‘what’s next?’

Eric Lonergan

7th August 2016

Definitions of Money, Helicopter Money, Monetary Policy, Press

...

Monetary policy: transparency or obfuscation?

Eric Lonergan

5th August 2016

Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

1

We live in a era where monetary policy is more transparent than ever - if measured by press conferences, publication of minutes and individual policy-makers forecasts. At the same time, the behaviour of cent...

The Bank of Japan is testing Romer’s hypothesis

Fiscal subservience – a reply to Chris Sims

There is no r*

Brexit: everyone got it wrong

There is no shortage of safe assets – a short proof

Institutions matter

Eight pitfalls to avoid in the helicopter money debate

The Best of Brexit

Monetary policy & babysitting: why rates are so low, and ‘what’s next?’

Monetary policy: transparency or obfuscation?

Reviews of Eric’s book

Monetary policy & babysitting: why rates are so low, and ‘what’s next?’

Simon Jenkins decides I’m an American, Guardian (2014)