Category Archives: Uncategorized

Ken Rogoff wrote recently extolling the virtues of abolishing cash in favour of electronic money in order to escape the zero lower bound, which he prefers to the alternative of raising the inflation target.  Targeting higher inflation would ‘baffle’ the … Continue reading →

On 27 May, Mark Carney, Governor of the Bank of England, gave a speech on the topic of ‘inclusive capitalism’ at a conference carrying the same name.  I can understand why he made it.  Once invited, there are risks to … Continue reading →

Many, for different reasons, have suggested that the rate at which central bank policy rates might settle will be significantly lower than the rate that prevailed on average in the pre-financial crisis period. In his parting speech as Deputy Governor … Continue reading →

In a recent paper, Paul Krugman, echoing a suggestion made by Olivier Blanchard, makes a compelling case for raising the inflation target in the US and other Western economies, to avoid the difficulties that would come with another episode at the … Continue reading →

Paul Krugman and Simon Wren Lewis give my post on the unresolved nature of state of the art macro a good kicking. Paul characterises me as saying that macro has nothing useful to say, and that justifies doing nothing about … Continue reading →

Paul Krugman says that economics had the answer to how to respond to the crisis.  It’s just that policy failed to follow the prescription.  The textbook said that private demand was deficient, and that what we needed was more public … Continue reading →

Chris Giles wrote that the Bank of England was ‘institutionally doveish’, recalling when the London Metropolitan Police was labelled as ‘institutionally racist’.  I don’t agree, despite that Chris’ article pre-empted the Bank of England’s Monetary Policy Committee leaving interest rates … Continue reading →