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The year is 1931. US president Hoover on June 20 announces the so-called Hoover Moratorium. Hoover's proposition was to put a one-year moratorium on payments of World War I and other war debt, postponing the initial payments, as well as interest. This obvious is especially a relief to Germany and Austria. The proposal outrages a lot of people and especially the France government is highly upset by the proposal.
Scott Sumner in a blog post today calls Bennett McCallum "the most respected NGDP advocate in the entire world". I completely agree with Scott. McCallum's work on "Nominal Income Targeting" (maybe out of respect for McCallum we should really call it that...) is second to none and everybody interested in the topic should read all of his work (I am getting there...). I am particularly impressed with Dr. McCallum's work on Nominal Income Targeting in Small Open economies.
The great thing about the blogosphere is that everything is happening in “real-time”. In economic journals the exchange of ideas and arguments can go on forever without getting to any real conclusion and some debates is never undertaken in the economic journals because of the format of journals.
I always enjoy reading whatever George Selgin has to say about monetary theory and monetary policy and I mostly find myself in agreement with him.
Clark Johnson's paper on the Great Recession has reminded me of Milton Friedman's so-called "Plucking model" as Johnson mentions Friedman original 1966 paper on the Plucking model. I haven't thought of the Plucking model for some time, but it is indeed an important contribution to economic theory which in my view is somewhat under-appreciated.
First Market Monetarism hit Wikipedia and now it is "Nominal Income Targeting". It is interesting stuff. So take a look. However, the writer(s) obviously has a Market Monetarist background of some kind (and no, it is not me...). This is obviously nice, but it should be noted that Nominal Income Targeting has quite long history in the economic literature pre-dating Market Monetarism and that in my view should be reflected on the "Nominal Income Targeting"-page on Wikipedia. I also miss the link to the Free Banking literature. Furthermore, there should be cross references to other monetary policy rules such as price level targeting and inflation targeting. But the great thing about Wikipedia is that these texts over time improves...