Theory & Other Problems Archives - Page 6 of 6

Bond bubbles, MMT, and the limits to fiscal policy

8th April 2015

Finance & Asset Pricing, Theory & Other Problems

Some reflections on this discussion between Brad DeLong and Noah Smith. Most people who believe in a bond bubble hold inconsistent beliefs. A 10-year Treasury yield of 2% is obviously a bubble, right? After al...

The “Pigou effect” is smarter than you think, and more relevant than ever

Eric Lonergan

5th April 2015

Economic History, Helicopter Money, Monetary Policy, Theory & Other Problems

6

I was taught to dismiss the Pigou effect. Arthur Cecil Pigou (or “Pig” if you believe spell-check) was a great Cambridge economic theorist, known to most of us as the object of Keynes’s repeated ridicule in the...

Microfoundations: a brief reply to Brad

Eric Lonergan

4th April 2015

Theory & Other Problems

The question of microfoundations raised by Brad DeLong, and discussed by Simon Wren-Lewis is more relevant to the current policy failures in monetary policy than it appears. Simon, who’s blog is a breath of fre...

We are nowhere near the zero bound

Eric Lonergan

3rd January 2015

Monetary Policy, Theory & Other Problems

1

We need more cash, not less. Many economists just assume that central banks have hit “the zero bound” on interest rates and that conventional policy is thereby exhausted. Take Ken Rogoff’s bizarre proposal as a...

Bond bubbles, MMT, and the limits to fiscal policy

The “Pigou effect” is smarter than you think, and more relevant than ever

Microfoundations: a brief reply to Brad

We are nowhere near the zero bound

Reviews of Eric’s book

CNBC: market sell-off is ‘noise’

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