Monetary Policy Archives - Page 3 of 7

MMT and fiscal rules (part I) – a prologue

28th October 2018

Definitions of Money, Monetary Policy, Theory & Other Problems

When I explained the essential tenets of Modern Monetary Theory (MMT) to Ben Bernanke, over dinner in Washington, he replied somewhat quizzically, “Isn’t that just economics?” In fact, on the accounting treatme...

Central bank ‘equity’ debunked

Eric Lonergan

23rd August 2018

Definitions of Money, Helicopter Money, Monetary Policy

18

The equity of a corporation is the difference between its assets and liabilities. Under typical accounting practice for central banks, transferring cash directly to households would result in a decline in their...

Defining Emerging Markets

Eric Lonergan

9th August 2018

Austerity, Finance & Asset Pricing, Monetary Policy

9

Emerging markets are not poor countries, nor are they countries which are making economic progress. They are defined by a very specific set of macroeconomic properties, which financial markets are conscious of,...

r* and the range of irrelevance

Eric Lonergan

29th December 2017

Definitions of Money, Economic History, Finance & Asset Pricing, Monetary Policy

6

Despite the fact that interest rates determine all asset valuations, there is nothing close to a general theory of interest rate determination. The rule of thumb when I started working in financial markets was ...

MMT part III – conclusion, and a conversation with Ben Bernanke

Eric Lonergan

20th October 2017

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

24

My last two blogs have revisited the issue of whether or not base money is a liability of the state. The issue played a central role in a discussion over the future of monetary policy at the Brussels think-tank...

MMT part II: a synthesis, an olive branch, and a defence of Twitter

Eric Lonergan

11th October 2017

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

26

This is a short follow-up to my previous post, ‘MMT - sophistry or substance?’, and Simon Wren-Lewis’s ‘Why is MMT so popular?'. Summarising, I suggest the two defining characteristics of MMT are: (1) a theo...

MMT: school of thought or set of personalities?

Eric Lonergan

7th October 2017

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

29

MMT revisited Simon Wren-Lewis’s recent post on why MMT is so popular makes a number of important points. The Twitter response to Simon’s post was fairly representative - to its credit, MMT has a committed c...

Raising rates is a stimulus

Eric Lonergan

4th October 2017

Helicopter Money, Monetary Policy, Theory & Other Problems

There are two broad categories of monetary policy instrument: 1) measures which are aimed at influencing market interest rates, and 2) transfers from the central bank to the private sector. ‘Conventional’ m...

Intelligent money & valuing Bitcoin

Eric Lonergan

10th September 2017

Definitions of Money, Helicopter Money, Monetary Policy

12

The most significant innovation in Bitcoin is not blockchain, nor the fact that it is a non-state-backed electronic currency. It is truly ground-breaking because it is the first 'intelligent' money. An 'intelli...

The case for a new economics

Eric Lonergan

26th February 2017

Economic History, Helicopter Money, Monetary Policy, Theory & Other Problems

3

What’s really wrong with NAIRU Earlier this year, Matthew Klein at FT’s Alphaville, made a typically punchy and well-argued case for abandoning a cornerstone of the current macro policy framework - the NAIRU...

MMT and fiscal rules (part I) – a prologue

Central bank ‘equity’ debunked

Defining Emerging Markets

r* and the range of irrelevance

MMT part III – conclusion, and a conversation with Ben Bernanke

MMT part II: a synthesis, an olive branch, and a defence of Twitter

MMT: school of thought or set of personalities?

Raising rates is a stimulus

Intelligent money & valuing Bitcoin

The case for a new economics

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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