Monetary Policy Archives - Page 4 of 7

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....

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...

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...

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

Eric Lonergan

31st July 2016

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

30

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

7

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

9

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...

The Bank of Japan is testing Romer’s hypothesis

Fiscal subservience – a reply to Chris Sims

There is no r*

Institutions matter

Eight pitfalls to avoid in the helicopter money debate

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

Monetary policy: transparency or obfuscation?

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

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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