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Latest Posts
  • Net zero has little to fear from populism
  • Reframing climate policy: a reply to Simon Wren-Lewis
  • Highs & lows of economics: Kilkenny, crypto, and inflation
  • Euro crisis II

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
11
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...

Buffett v the Landesbank – the US gets paid to have a trade deficit

Eric Lonergan
26th March 2016
Economic History, Finance & Asset Pricing, Theory & Other Problems
28
It remains conventional wisdom that the US current account deficit is the accumulation of a debt that will one day need to be repaid. There are very good reasons to believe this is false. The US in fact has ne...

Nothing is permanent

Eric Lonergan
5th March 2016
Monetary Policy, Theory & Other Problems
14
To borrow a disparaging phrase from Paul Krugman, the concept of 'permanence' in economics seems “to have a special ability to create intellectual confusion, even in smart people.” Personally, I don't reall...

The BoJ has started helicopter drops

Eric Lonergan
26th February 2016
Definitions of Money, Finance & Asset Pricing, Helicopter Money, Monetary Policy
27
Oddly, some economists think that helicopter drops are either beyond the capacity of central banks or highly unlikely. Neither is true - they have already started. It is now clear that the Bank of Japan is e...
Keynes and Friedman

Legal helicopter drops in the Eurozone

Eric Lonergan
24th February 2016
Helicopter Money, Monetary Policy, Money in Europe
16
Helicopter drops in the Eurozone may be a legal obligation of the European Central Bank (ECB). The laws governing the ECB are extremely clear, and repeat three features which policy must comply with: 1. T...

There is a lot more the ECB can do

Eric Lonergan
23rd February 2016
Monetary Policy, Money in Europe
2
So far, the debate on negative interest rates completely misses the point. If the private sector could borrow at long maturities at negative interest rates, banks could be profitable, and savers didn't experien...

The economics of language: David Hume & valuing Facebook

Eric Lonergan
19th February 2016
Definitions of Money, Economic History, Theory & Other Problems
14
David Hume is the first great thinker to identify language, law and money as 'spontaneous' institutions of social organisation. Hume was on to something quite profound, which remains under-appreciated. Langu...

Debt-free money: A brief reply to Randall Wray

Eric Lonergan
16th February 2016
Definitions of Money, Monetary Policy
26
L. Randall Wray is exercised by my suggestion that he has engaged in semantic sleight-of-hand. To summarise my argument: it is an obvious fact that a ten dollar bill is not a debt - because the issuer owes the...

Accounting as religion: Buffett, Derrida, and MMT

Eric Lonergan
17th January 2016
Definitions of Money, Economic History, Theory & Other Problems
89
A number of my recent posts seem to have wound up some of the more sensitive ‘mainstream’ economists, who don't like the suggestion that the likes of Minsky deserve their own 'school’. Some philosophers of sc...
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Reviews of Eric’s book

  • Reviews of Eric’s book

    Eric Lonergan
    9th August 2014

In the press

  • CNBC: market sell-off is ‘noise’

    Eric Lonergan
    17th February 2018
  • Monetary policy & babysitting: why rates are so low, and ‘what’s next?’

    Eric Lonergan
    7th August 2016
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