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Even more optimistic thoughts about productivity growth, labour market flexibility and Secular Stagnation
Nearly a year ago I in a response to Fed Chair Janet Yellen’s apparent concerns over the valuation of the US stock market argued – echoing Irving Fisher’s ill-fated views from 1929 – that the US stock market had reached a “permanently high plateau”.
Scott Sumner a couple of days ago wrote a post on the what he believes is a Great Stagnation story for the US. I don't agree with Scott about his pessimism about long-term US growth and I don't think he does a particularly good job arguing his case.
This is from Reuters:
Oops I did it again – this time I talk to my phone about monetary policy in the Gulf States and my suggestion that these countries should peg their currencies to the oil price or a basket of the oil price and the US dollar. This is of course what I have suggested should be termed the Export Price Norm (EPN). Have a look here.
St. Louis Federal Reserve president James Bullard just came out in support of nominal GDP targeting - or rather he has co-authored a rather interesting new Working Paper, which concludes that NGDP targeting under some circumstances would be the best policy to pursue.
I am writing this on an American designed computer - probably assembled somewhere in China.
The Greek Finance Minister Yanis Varoufakis has a new article for Project Syndicate. He is making a point that Market Monetarists have been making since the outbreak of the euro crisis - it is not really a 'debt crisis', but rather a monetary crisis.
Yes I readily admit it - I am begining to like to talk to my phone but obviously this might just be plain silly - talking about the Polish economy while on an escalator in Copenhagen airport.
It is Sunday morning and I really shouldn't be blogging, but I just have time to share a couple of working papers with you.