Theory & Other Problems Archives - Page 3 of 6

When big data is worse than a sample of none

10th June 2017

Finance & Asset Pricing, Theory & Other Problems

Michael Mauboussin uses a very simple exercise to illustrate how difficult it is to statistically distinguish skill from luck. Investors are often deemed geniuses or fools based on small samples. Think of those...

The economics of partying too hard

Eric Lonergan

10th June 2017

Theory & Other Problems

What is the difference between work and leisure? A distinction based on paid and unpaid activities is incomplete. A better distinction is between activities we want do and those we don’t enjoy. But this is also...

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...

Blogoff – The Curse of Cash

Eric Lonergan

19th November 2016

Definitions of Money, Helicopter Money, Monetary Policy, Theory & Other Problems

4

Rogoff's law - the opposite is usually true Punning on Kenneth Rogoff's surname is proving irresistible. He has just launched a new economics blog, which should prove rich in thought-provoking missives. Conf...

Where next? Monetary policy in a post policy-rate world

Eric Lonergan

9th October 2016

Helicopter Money, Monetary Policy, Money in Europe, Theory & Other Problems

4

Three new bazookas Recent shifts in policy direction by global central banks may prove to be profound. The Bank of Japan and the ECB appear to be conceding that further bond purchases and lower policy rates ar...

The Bank of Japan is testing Romer’s hypothesis

Eric Lonergan

24th September 2016

Economic History, Monetary Policy, Theory & Other Problems

1

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....

There is no shortage of safe assets – a short proof

Eric Lonergan

23rd August 2016

Definitions of Money, Finance & Asset Pricing, Theory & Other Problems

Safe assets are bunds, treasuries, gilts, JGBs and other government bonds issued by large developed economies. In one sense, they actually are ‘safe’ assets. They are typically negatively correlated with risk a...

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...

When big data is worse than a sample of none

The economics of partying too hard

The case for a new economics

Blogoff – The Curse of Cash

Where next? Monetary policy in a post policy-rate world

The Bank of Japan is testing Romer’s hypothesis

Fiscal subservience – a reply to Chris Sims

There is no r*

There is no shortage of safe assets – a short proof

Institutions matter

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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