ALL BLOG POSTS
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...
As I have written about in an earlier post I am reading Clash Johnson’s book on the Great Depression “Gold, France and the Great Depression”. So far it has proved to be an interesting and insightful book on what (to me) is familiar story of how especially French and US gold hoarding was a major cause for the Great Depression.
Douglas Irwin has been so nice to send me an article from the New York Times from November 1 1931. It is a rather interesting article about the Swedish monetary guru Gustav Cassel's view of monetary policy and especially how he saw puritanism among monetary policy makers as the great ill. I had not read the article when I wrote my comment on Calvinist economics, but I guess my thinking is rather Casselian.
Interestingly enough both Paul Krugman and Brad DeLong have now come out in favour of NGDP level targeting. Hence, the policy recommendation from these two Keynesian giants are the same as from the Market Monetarist bloggers, but even though the Keynesians now agree with our policy recommendation on monetary policy in the US the theoretical differences are still massive. Both Krugman and DeLong stress the need for fiscal easing in the US. Market Monetarists do not think fiscal policy will be efficient and we are in general skeptical about expanding the role of government in the economy.