Blog - Page 3 of 12 - Philosophy of Money

A brief reply to Paul Krugman on policy equivalence, h/t Brad DeLong

31st July 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe

Brad DeLong has revived an old piece by Paul Krugman on helicopter money (HM), which is correct in one sense, but I also think completely misses the point. Cutting to the chase, I recently attended a very au...

Fiscal policy: a brief reply to Duncan Weldon

Eric Lonergan

28th July 2016

Austerity, Finance & Asset Pricing, Helicopter Money, Monetary Policy

6

Duncan Weldon has written a very perceptive blog, arguing that helicopter money is ‘a solution in search of a problem’ - what we really need is effective fiscal policy. In one sense, Duncan is spot on. A smart ...

There are two types of negative interest rates

Eric Lonergan

19th July 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe

8

One works, the other doesn't Central banks typically alter monetary policy through the price of credit (interest rates) and the provision of credit (usually lending to banks against collateral). Central banks...

Old myths, new problems – interpreting a British referendum

Eric Lonergan

26th June 2016

Economic History, Money in Europe, Sample Of One

4

The myth of national identity One consequence of the end of the Cold War was the re-emergence of nationalism in European politics. It was not the “End of History”, but reversion to the mean. Nationalism is...

Bored by Borio

Eric Lonergan

27th May 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe

3

Claudio Borio, and his colleagues, incinerate a straw man. Helicopter money - sensibly defined - does not involve any new commitments about future monetary policy. So Borio's arguments are not even relevant. ...

Helicopter money is different

Eric Lonergan

24th May 2016

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

31

The discussion of helicopter money may have moved from the periphery of the policy debate to its centre. Unfortunately, analytical confusion seems correlated with interest levels. Keynes once remarked that w...

Bernanke’s four errors

Eric Lonergan

12th April 2016

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

11

I am a huge fan of Ben Bernanke. He can take a significant amount of personal credit for preventing a depression. Also, The Courage to Act is a superb book. Disappointingly, Ben’s latest contribution to the ...

No expectations

Eric Lonergan

6th April 2016

Definitions of Money, Helicopter Money, Monetary Policy, Money in Europe

18

Nick Rowe and his colleagues in Canada have a superb blog. If you’re interested in economics and don't already follow it - take a look. Recently, Nick and I have been discussing the relevance of ‘permanence...

Is it permanent? A reply to Nick Rowe

Eric Lonergan

4th April 2016

Definitions of Money, Finance & Asset Pricing, Helicopter Money, Monetary Policy

7

Nick Rowe has written a typically-lucid note which makes clear why it might make a difference to consumer behaviour if a tax cut is permanent, or temporary. To this extent, we are in full agreement: giving some...

The distinction between monetary and fiscal policy

Eric Lonergan

3rd April 2016

Helicopter Money, Monetary Policy, Money in Europe

10

Policies which have fiscal effects are not necessarily fiscal policy. To believe otherwise is a fallacy. The distinction between fiscal and monetary policy is rarely, if ever, made clear by economists of an...

A brief reply to Paul Krugman on policy equivalence, h/t Brad DeLong

Fiscal policy: a brief reply to Duncan Weldon

There are two types of negative interest rates

Old myths, new problems – interpreting a British referendum

Bored by Borio

Helicopter money is different

Bernanke’s four errors

No expectations

Is it permanent? A reply to Nick Rowe

The distinction between monetary and fiscal policy

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)