ALL BLOG POSTS

Taxes and the liquidity trap

Taxes and the liquidity trap

How often have you heard it? Monetary policy is impotent because interest rates are very low and if you increase the money base banks will just hoard all the money and will not lend out anything. Market Monetarists of course know that this is nonsense, but we have all also tried to explain this to people that seem unable to listen to the arguments.

Friedman provided a theory for NGDP targeting

Friedman provided a theory for NGDP targeting

A distinct feature of Market Monetarist thinking is that our starting point for monetary analysis is nominal income and that monetary policy determines nominal income or nominal GDP (NGDP). This is contrary to New Keynesian analysis where monetary policy determines real GDP, which in turn determines inflation via a Phillips curve.

Friedman’s thermostat and why he obviously would support a NGDP target

Friedman’s thermostat and why he obviously would support a NGDP target

In a recent comment Dan Alpert argues that Milton Friedman would be against NGDP targeting. I have the exact opposite view and I am increasingly convinced that Milton Friedman would be a strong supporter of NGDP targeting.

Argentine lessons for Greece

Argentine lessons for Greece

As Greek Prime Minister George Papandreou is fighting to putting together a new government after he yesterday survived a no-confidence vote in the Greek parliament I am once again reminded by the Argentine crisis of 2001-2002.

The Market Monetarist voice at Cato Institute

The Market Monetarist voice at Cato Institute

In a pervious post I have noted that Tim Lee a scholar at the libertarian Cato Institute has been endorsing basically Market Monetarist ideas. Now Tim has a comment on Market Monetarism. I am happy to see that Tim has nice things to say about Market Monetarism and my paper on Market Monetarism in his latest article at forbes.com.

Does China target NGDP?

Does China target NGDP?

Much of the debate about NGDP targeting in the blogosphere is about what the Federal Reserve should do. However, I think it is equally important to discuss and focus on what monetary regimes are preferable for other countries. I hope I will be able to increase the focus among Market Monetarists on monetary policy in other countries than the US.

Tim Lee - Market Monetarist

Tim Lee - Market Monetarist

Timothy B. Lee at the Cato Institute has a couple of interesting comments out on US monetary policy - they are at the core very much Market Monetarist.

Beckworth and Ponnuru: Tight budgets, Loose money

Beckworth and Ponnuru: Tight budgets, Loose money

David Beckworth and Ramesh Ponnuru just came out with a new article on the economic policy debate in the US. Beckworth and Ponnuru lash out against both left and right in American politics. Let me just say that I agree with basically everything in the article, but you should read it yourself.

 William Niskanen 1933-2011

William Niskanen 1933-2011

William Niskanen passed away on October 26. I have always admired Niskanen a lot. He was a champion of liberty and a great economist.

The Chuck Norris effect, Swiss lessons and a (not so) crazy idea

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