Monetary Policy Archives - Page 4 of 6

There are two types of negative interest rates

19th July 2016

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

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...

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

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...

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

25

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...

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 are two types of negative interest rates

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

Nothing is permanent

The BoJ has started helicopter drops

Legal helicopter drops in the Eurozone

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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