Monthly Archives: March 2017

Re-specifying the inflation target for low real interest rates

The Fed’s John Williams has commented that the Fed should revisit the inflation target to provide for future episodes in which very low interest rates are needed. This is welcome.  Blanchard, Krugman, and many others have made the same argument. … Continue reading

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Carney, financial sector ethics, and Hogg

Mark Carney gave opening remarks on a panel on ‘law, ethics and culture in banking’.  I thought they were unfortunate. They come shortly after the resignation of Charlotte Hogg, newly appointed Deputy Governor at the BoE.  She had forgotten to … Continue reading

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Brexit and Scottish Independence: It May have been time for some bad game theory

The SNP have called for a second referendum on Scottish independence, and many feel this is the direct result of the Prime Minister steering us towards a ‘hard Brexit’:  exit from the single market and the customs union. This seems … Continue reading

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If Brexit means Brexit, we are not doing what we need on macro policy to make the best of it

Budget day.    Article 50 is about to be invoked.  From here until actual EU exit, there is a sizeable risk of a sharp reduction in growth, or even a recession, as information emerges about the likely terms of trade with … Continue reading

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