Monthly Archives: September 2014

What the left hand buyeth, the right hand issueth

Roger Farmer has a great post showing how the maturity composition of outstanding US debt lengthened as the Fed embarked on its program of buying long dated securities.    As Summers reportedly put it, while the Fed was engaged in quantitative … Continue reading

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The FT and the undergraduate economics curriculum

Another post in quick succession, brought on by realising that my Bristol train is too jiggly to do algebra or write code, which I am supposed to be doing right now. This responds to a thoughtful and thought-provoking FT leader … Continue reading

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When we give [our taxes to the central bank] how much do we receive?

This post repeats a gripe I had after Bank of England Governor Mark Carney spoke at the ‘inclusive capitalism’ conference, ranging over matters of economic and moral philosophy on which I contended he was not hired to talk.  On 9 … Continue reading

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Even devolving balanced-budget tax and spend powers is tricky

Phew.  Or, wait?  What economic form is devolution going to take?  I blogged before that there was an argument that devolving borrowing powers out to component states would weaken the speed and force with which discretionary fiscal policy could be … Continue reading


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Salmond’s QE grab

I read on Faisal Islam’s twitter feed that Alex Salmond had suggested on Sky to Adam Boulton that the SNP should get its rightful share of the gilts bought under the QE program by the Bank of England.  This prompted … Continue reading

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Project Fear, or Project Stop Them Having Their Cake and Eating It?

The effort to get supermarkets to explain that they will probably raise prices in an independent Scotland, and to get Banks to make plain their plans to redomicile into the Rest of the UK, has been dubbed, seemingly successfully, ‘Project … Continue reading

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Devolved borrowing would create the same mess as giving Indy Scotland a currency union

This hurried post, that I would have liked to think about much more carefully, is prompted by the all-party promise for more devolved powers for Scotland, in the event of a ‘No’ vote, and also the provocative paper put out … Continue reading

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Saving the euro with second order Ricardian non-equivalence

This post picks up on Draghis’ comments that buying riskier assets can be better for the stabilising properties of the ECB’s forthcoming credit easing.  The title looks like it’s calculated to put readers off.  But 1) it’s Friday, 2) I’m … Continue reading

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Short term separation risk: a confidence run at the zero bound with fiscal policy incapacitated

A long-time risk of simply the possibility of a Yes vote for Scottish independence, let alone the actuality, is that investment would dry up in Scotland, and perhaps in the rest of the UK;  deposits and wholesale funding for Scottish … Continue reading

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Why ECB purchases could be more stimulative, euro for euro, than UK or US QE.

A short post substantiating my tweet yesterday asserting this, which was picked up by the Guardian, but, all on its own, to those not swimming in this stuff, might look rather odd. We could think of an ECB purchase of … Continue reading

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