Money in Europe Archives - Page 3 of 4

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

31st July 2016

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

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...

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...

Old myths, new problems – interpreting a British referendum

Eric Lonergan

26th June 2016

Economic History, Money in Europe, Sample Of One

4

The myth of national identity One consequence of the end of the Cold War was the re-emergence of nationalism in European politics. It was not the “End of History”, but reversion to the mean. Nationalism is...

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. ...

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...

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...

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 is a lot more the ECB can do

Eric Lonergan

23rd February 2016

Monetary Policy, Money in Europe

2

So far, the debate on negative interest rates completely misses the point. If the private sector could borrow at long maturities at negative interest rates, banks could be profitable, and savers didn't experien...

Paul Krugman is right – our models may be better than Larry’s instincts

Eric Lonergan

12th January 2016

Economic History, Finance & Asset Pricing, Money in Europe, Uncategorised

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 ...

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

There are two types of negative interest rates

Old myths, new problems – interpreting a British referendum

Bored by Borio

Bernanke’s four errors

No expectations

The distinction between monetary and fiscal policy

Legal helicopter drops in the Eurozone

There is a lot more the ECB can do

Paul Krugman is right – our models may be better than Larry’s instincts

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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