Monthly Archives: March 2015

Pascal, academia and Bernanke

Ben Bernanke’s new blog has gripped the Econternet. Bernanke has argued that the US economy is not experiencing secular stagnation.  Sooner or later, warranted real interest rates will rise above -2 per cent, and the Fed will be free to … Continue reading

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Cecchetti and Schoenholtz on raising the inflation target

Mark Thoma sent round this interesting post from Cecchetti and Schoenholtz’s blog, [CS] asking whether 2% inflation targets were still appropriate.  In a nutshell, they argue that if central banks were starting over, they should pick a higher number.  But … Continue reading


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Ruling out ruling out [changes in taxes and spending]

Karl Whelan commented on Twitter, after the ‘ruling out’ tax change competition was replayed on Newsnight, that this might be the worst general election campaign ever.  I think he and I are too young to comment on that authoritatively, but … Continue reading

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Peston graded a zero on non-zero zero bound.

Despite the evident contradiction in further blogging, given my ‘why bother?’ post, I thought I would explain why I tweeted ‘er, no’ in response to a blog by Robert Peston [UK BBC Economics Editor] on issue of whether the zero … Continue reading

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Discord about econ discourse

Danny Blanchflower remarked on Twitter that UK economic discourse lacked much engagement from academics. This was a follow-up to a Paul Krugman post where he disparaged UK economic discourse, and used as his metric the fact that there was a … Continue reading

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Eurozone QE: features and bugs

Daniela Gabor at UWE tweeted an interesting article on Reuters describing troubles in money markets due to a ‘shortage’ of high quality sovereign bonds in the Eurozone.  The proximate cause is the launch of the ECB’s quantitative easing program.  The … Continue reading

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Price level shocks and bottom up theories of inflation

I think the ‘price level shock’ fallacy is related to another fallacy that we can divine the causes and future of inflation by adding up individual price series. The price/level/inflation shock categorizer like Ian McCafferty thinks to himself: ‘oil prices … Continue reading

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I’ve accepted a post as Prof of Economics at Birmingham, where I’ll join in the Summer.

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Carney and McCafferty on oil and monetary policy

Carney and McCafferty delivered a one-two on monetary policy and oil prices.  Both get it wrong in my opinion, but, in diffent ways.  [Remember Tolstoy’s Ana Karenina:  ‘all good economic arguments are alike.  Each bad one is bad in a … Continue reading

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The Bond of trust Yielding from central bank transparency

A tired pun, in service of a continued campaign on this blog for increased transparency in central banking.  Or rather at the Bank of England in particular. Previous rants have focused on the fact that the BoE does not yet … Continue reading

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