Monthly Archives: December 2013

More on Draghi’s almighty OMT bluff

A while ago I posted this, explaining how I thought that OMTs were an almighty – if so far successful – bluff.  The reasoning being that the promise is to buy whatever quantity it takes to eliminate a gap between … Continue reading

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Simon Wren Lewis on ‘mainly microfounded macro’

Simon Wren-Lewis responded to my post on microfoundations in macro, wondering what was wrong with mainly micro-founded macro [is this what his blog name really refers to?] if small ad-hoc interventions helped the model fit the data better. The presumption in … Continue reading


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Why microfoundations have merit.

This post is prompted by a twitter exchange some time ago between Adam Posen, Noah Smith and myself over the ‘merit’ of microfoundations.  [Here’s a storify recap].  And that in turn by the fall-out from the events at the Federal … Continue reading

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How should we empirically verify whether QE increased or decreased inflation?

Matt O Brien tweeted round an interesting piece by David Beckworth, which estimated a VAR to try to resolve a debate between Steve Williamson on the one hand, and Brad deLong, Paul Krugman, Noah Smith and others about whether QE … Continue reading

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Why don’t economic research functions exist within Finance Ministries?

This question was posed in conversation with the Norges Bank’s Oistein Roisland and Gisle Natvik last night. Why indeed?  The task of figuring out optimal fiscal policy is no less important than optimal monetary policy.  And arguably a lot more … Continue reading

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Bitcoin Bitpuzzling

The Economist carried a nice piece on Bitcoin that many may already have read.  They conclude that the explosion in the price of Bitcoins (recently breaking the $1000 barrier) looks bubbly.  I agree. Most people with things to sell don’t … Continue reading

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