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Over the last week commodity prices has dropped quite a bit - and especially the much watched gold price has been quite a bit under pressure.
Today I got an interesting question: “does NGDP targeting equate to more quantitative easing (QE) of monetary policy?”.
European policy makers still seem to be far from finding a solution to the euro crisis. However, there are solutions. The best solutions in my views does not come from Europe, but rather from our friend David Beckworth at the Texas State University. Here is his interview with Stephen Evans on BBC Radio (around 8 minutes into the program).
I have recently been giving a lot of attention to the work of David Eagle and his Arrow-Debreu based analysis of monetary policy rules. This is because I think David's work provides a microfoundation for Market Monetarism and adds new dimensions to the discussion about NGDP targeting - particularly in regard to financial stability.
It’s Sunday night in Copenhagen and I have just returned from a trip to Dubai. I should really write a long post about Dubai, but I will keep it short.
I found yet another gold nugget in David Eagle’s research:
Imagine you are ”born” as a macroeconomists in the US or Europe around 1990. You are told that you are not allowed to study history and all you your thinking should be based on (apparent) correlations you observe from now on and going forward. What would you then think of the world?