Monthly Archives: January 2015

Simon’s defence of NGDP targeting makes many good points – in contrast to what he calls the ‘faith-based’ argumentation of the market monetarists – and this blog responds to some of them. He rightly challenges the emphasis I place on … Continue reading →

And a post post post script. The case against NGDP targeting is actually even stronger theoretically than I let on in that post.  I organised the last post around the simplest possible sticky price model, with no saving, capital, only … Continue reading →

Post Post Script on the zero bound and raising the inflation target. It’s put to me that NGDP targeting is a better way to avoid the zero bound than raising the inflation target. This question can’t be answered definitively without … Continue reading →

Postscript to the previous post on the ZLB. The practical challenges of devising watertight legal reform to eliminate cash and its near substitutes, both currently invented and yet to be, or to reform them so that a variable negative interest … Continue reading →

John Cochrane makes interesting points about the ubiquity of risk-free, zero-interest stores of value in a modern economy. Such multitudes mean that it would be more complicated than at least I had earlier thought to generate a negative nominal interest … Continue reading →