I have a question about NGDP growth the first graph. After the big plunge in 2008, it comes back up, has a peak in what looks to be late 2010 early 2011, then sinks a little and levels off. Could that peak have had something to do with what appears to have been something like “green shoots” with the employment situation getting a little better only to take another dive with NGDP growth? I’ve been curious about that little bit of improvement we had and why it’s now sort of evaporating. Some have attributed it to Operation Twist, but we started seeing signs of improvement before that, and so I am skeptical that they are related.
dajeeps – Maybe it´s the “pluck” at work. But it was week and fickle, only managing to stop the plunge, taking place when QE1 came on line in March 09. That´s more clear when you look at the NGDP level data.
i dont know of you noticed, but DeLong put reblogged this with commentary. he seems to have accepted the idea that the Fed was sort-of ngdp targeting during the great moderation.
Historinhas 
Brilliant! But as we now know, Greenspan didn’t really know what he was doing…
What software do you use to make the graphs?
Saturos – Thanks. I do the stuff in E-Views and the “dress-up” in PPT.
I really like this visual information. What do you mean by “volatility”?
Joseph – “Volatility” is measured by the standard deviation (of spending (NGDP) growth and inflation. Popularly, how “widely” they bounce around.
I have a question about NGDP growth the first graph. After the big plunge in 2008, it comes back up, has a peak in what looks to be late 2010 early 2011, then sinks a little and levels off. Could that peak have had something to do with what appears to have been something like “green shoots” with the employment situation getting a little better only to take another dive with NGDP growth? I’ve been curious about that little bit of improvement we had and why it’s now sort of evaporating. Some have attributed it to Operation Twist, but we started seeing signs of improvement before that, and so I am skeptical that they are related.
dajeeps – Maybe it´s the “pluck” at work. But it was week and fickle, only managing to stop the plunge, taking place when QE1 came on line in March 09. That´s more clear when you look at the NGDP level data.
i dont know of you noticed, but DeLong put reblogged this with commentary. he seems to have accepted the idea that the Fed was sort-of ngdp targeting during the great moderation.
dwb you beat me to it! Good to see this at DeLong’s blog.
dwb Becky: Thanks. I had seen it this morning. It´s good because it directs thaffic over here!
Pingback: Loss of production capacity due to dysfunctional monetary policy « dajeeps