Euro crisis II
Euro crisis II has started. The good news is that we have been here before, so we have learnt some lessons, the bad news is the that the underlying challenge is far greater: Italy - the likely epicentre of th...
Policy needs to pivot post-lockdown
Post-lockdown the economy will need a different kind of stimulus
The role of monetary and fiscal policy during lockdown was to sustain household and corporate cashflows in the face of an intentional freezing o...
Helicopter money as Covid response
Here are my slides from the Rebuilding Macro workshop on helicopter money....
Draghi’s historic farewell
This week’s policy decision by ECB is historic. For some time now, a number of economists have suggested that dual interest rates are the logical next step in the arsenal of central banks. Dual interest rates r...
The Prudence Principle: a new rule for fiscal policy
Should the government run a budget deficit or a budget surplus? What size should the deficit or surplus be?
Devising a rule which allows the public to assess the integrity of government is a major challenge...
Cyclical sovereignty
Only two of the world’s major economic blocks appear to have cyclical autonomy - China and the United States. For many decades now, Japan’s ability to stimulate domestic demand has been trivial relative to cycl...
Dual interest rates always work
The future of monetary policy - Dual interest rates
The significance of dual interest rates remains under-appreciated. The European Central Bank, Bank of Japan, and the Bank of England’s facilities are by fa...
Presentation on dual interest rates
PM Europe roundtable...
It’s time for the ECB to use its monetary power
Eurozone growth has stalled and inflation is below the ECB’s definition of price stability. As the recent actions of ECB make clear, further monetary easing is necessary for the ECB to fulfil its mandate.
Un...
Redesigning monetary policy
We need a modern monetary policy (MMP). Policy needs redesigning for three fundamental reasons:
Firstly, the mental models for thinking about how the macro-economy in the developed world works have been brok...