Monthly Archives: May 2014

Raising the inflation target: great idea, but not now.

In a recent paper, Paul Krugman, echoing a suggestion made by Olivier Blanchard, makes a compelling case for raising the inflation target in the US and other Western economies, to avoid the difficulties that would come with another episode at the … Continue reading

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Did economics fail? Reflecting on the Krugman and Wren-Lewis responses

Paul Krugman and Simon Wren Lewis give my post on the unresolved nature of state of the art macro a good kicking. Paul characterises me as saying that macro has nothing useful to say, and that justifies doing nothing about … Continue reading

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Did economics fail?

Paul Krugman says that economics had the answer to how to respond to the crisis.  It’s just that policy failed to follow the prescription.  The textbook said that private demand was deficient, and that what we needed was more public … Continue reading

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The Bank of England isn’t institutionally doveish

Chris Giles wrote that the Bank of England was ‘institutionally doveish’, recalling when the London Metropolitan Police was labelled as ‘institutionally racist’.  I don’t agree, despite that Chris’ article pre-empted the Bank of England’s Monetary Policy Committee leaving interest rates … Continue reading


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