ALL BLOG POSTS
Is the "Bernanke-Evans rule" working? Hell yes! At least in Mexico!
Not even Scott Sumner would answer "yes" to this question, but while NGDP level targeting will not cure the flu at least it will not kill you. Inflation targeting on the other hand will kill you if you get the flu. Confused? Then let me explain...
Even though NGDP level targeting is becoming increasingly popular I am increasingly getting worried that people don't really understand what Market Monetarists are talking about. The problem is that most observers and participants in the monetary policy debate continue to think about monetary policy in a highly discretionary way rather think about monetary policy in terms of rules.
I have been down and out with a nasty flu in the last couple of days - as has the rest of Christensen household - so I am not really up for blogging. A bit of Googlenomics will tell you that I am not the only one with a flu in Denmark. See what Google Trends has to say about the issue here.
Nobel Prize winning economist and founding father of the Public Choice school James M. Buchanan has died at age 93. His friends and students have already offered many kind words in his memory. Here I quote two of my friends professors Steve Horwtiz and Peter Kurrild-Klitgaard.
Opponents of NGDP level targeting often argue that nominal GDP is problematic as national account data often is revised and hence one would risk targeting the wrong data and that that could lead to serious policy mistakes. I in general find this argumentation flawed and find that it often based on a misunderstanding about what NGDP level targeting is about.
Following US political debate these days is like following a bad parody of a third world banana republic and even though I the deepest respect for Americans and US in general I must say it is hard not to agree with those Europeans that shake their heads these days and say "they are stupid those Americans". Well, it is not the Americans - it is their politicians and you could say a similar thing about Europe.
Bob Murphy has a very good discussion on Econlib about "What Economic Research Says About Fiscal Austerity and Higher Tax Rates".
This semester professor Daniel Lin is teaching a class in Macro at the American University and I have a tradition to interfere with how Daniel should teach his students - so I will not let down the opportunity to do it once again.