Category Archives: Uncategorized

Monetary policy mistakes, and central banks’ reluctance to discuss them

Watching the Bank of England Inflation Report Press Conference webcast this week, the subject of whether a monetary policy mistake was made in the aftermath of the Brexit vote in June loomed, with questions from Ben Chu and others.  This … Continue reading

Posted in Uncategorized | 1 Comment

Perceived grievance/wrong-headed sop vortex, updated

Last year, I wrote this post.  Worrying about a vortex of ever lower prosperity and policy rationality.  It was in the aftermath of the EU referendum in the UK, which can be taken to be a vote against immigration and … Continue reading

Posted in Uncategorized | Leave a comment

Political economy of pre and post crisis Eurozone inflation

Before the financial crisis, a standard assumption [I subscribed to] was that the Southern peripheral countries were on a path converging their income per capita to Northern levels, and as such, through Balassa-Samuelson effects, experiencing faster inflation.  The Balassa-Samuelson effect … Continue reading

Posted in Uncategorized | Leave a comment

Open letter to Neel Kashkari

Dear Neel I read that you are setting up a new research institute at the Minneapolis Fed to study inequality. I think this is a good use of resources. But I don’t think it’s appropriate for you to lead this … Continue reading

Posted in Uncategorized | 3 Comments

What did Tory Remainers get for giving into the hard Brexiters?

As I wrote here for Iain Martin’s site Reaction Life, the delay in being transparent about what the UK government wants was, I conjecture, mostly about conducting a negotiation between former Tory Remainers and the victorious Brexiteers. The UK had … Continue reading

Posted in Uncategorized | 2 Comments

Submitting to demonetization, or not

The Indian government decided recently to withdraw 85% of paper currency.  Despite the hair-brained nature of this scheme, ostensibly aimed at reducing corruption and tax evasion, the Reserve Bank of India agreed almost overnight.  More intriguingly, it seems to be … Continue reading

Posted in Uncategorized | 6 Comments

QE: leads to looser or tighter fiscal policy?

A recent Goldman Sachs piece on the UK holds the view that the BoE’s recent resumption of asset purchases will permit and prompt UK fiscal policy to be looser, postponing consolidation of the deficit.  The mechanism at work is that, … Continue reading

Posted in Uncategorized | 1 Comment