Monthly Archives: September 2011

I find this kind of comment intriguing. From ECRI (Economic Cycle Research Institute): Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head … Continue reading →

In a recent post Scott Sumner writes: “And yet I find myself once again to be very irritated by an argument against the demand-side view put forward by Cole and Ohanian”: The main point of our op-ed, as well as … Continue reading →

Martin Wolff is in the right frame of mind: It is the policy that dare not speak its name: the printing press. The time has come to employ this nuclear option on a grand scale. The alternative is likely to … Continue reading →

According to Bernanke, keeping short term interest rates low for a period “farther than the eye can see” is the way to go to keep long term rates also low in order to get a recovery “on the road”: In … Continue reading →

St Louis Fed president Bullard is “worried”: Recent declines in inflation expectations, as measured in government bond markets, are worrisome, James Bullard, president of the Federal Reserve Bank of St. Louis said in an interview with The Wall Street Journal. But not willing … Continue reading →

From Ambrose Evans-Pritchard: Dr Merkel, what we have is the crisis of a foolish monetary union that ought to be shut down but is being kept alive because the priesthood has endowed it with sacred significance. Let stop this absurd … Continue reading →

In a sense Plosser is right. From the WSJ: “The actions taken in August and September tend to undermine the Fed’s credibility by giving the impression that we think such policies can have a major impact on the speed of … Continue reading →

Someone was gracious enough to set up a nice but no frills NGDP Level Target site. I checked with the “usual suspects” and they all pleaded “not guilty”. Would the “perpetrator” please come forward! Meanwhile, you may be interested in … Continue reading →

This time the Journal doesn´t sound like the Journal. David Wessel writes about Liaquat (Lords of Finance) Ahamed´s musings: There is an optimistic scenario for the U.S. economy: Europe gets its act together. The pace of world growth quickens, igniting demand for … Continue reading →

We must reevaluate Bernanke´s supposed knowledge about the power of monetary policy. A reread of his (infamous) “A case of self-induced paralysis” on Japanese MP shows he´s almost exclusively concerned with deflation. “Deflation. Making sure “it” doesn´t happen here” in … Continue reading →