The BoJ has started helicopter drops
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...
Paul Krugman is right – our models may be better than Larry’s instincts
The debate between Larry Summers, Brad DeLong and Paul Krugman over models and confidence is summarised excellently by Martin Sandbu. On one point, Krugman is absolutely right: there was never any reason to be ...
Tobin & the end of banking
I'm writing about this subject with some trepidation. Many economists who have entered the fray have made fools of themselves; and many who triumphantly point out their errors usually go on to make some of thei...
The wealth illusion
Is the stock market wealth effect a “wealth illusion”?
In “Beyond Doughnuts” I argue that when interest rates are already low, further cuts may raise desired saving - the opposite effect to what most macro mod...
Bond bubbles, MMT, and the limits to fiscal policy
Some reflections on this discussion between Brad DeLong and Noah Smith.
Most people who believe in a bond bubble hold inconsistent beliefs. A 10-year Treasury yield of 2% is obviously a bubble, right? After al...