Search Results for: inflation target

On the assumption that the Monetary Policy Committee loosen at their August meeting, the question arises as to what unconventional policy might be undertaken. There is a clear indication in the July minutes that this is under consideration. I have … Continue reading →

The May Inflation Report was understandably dominated by the debate about the economics of Brexit. I thought that the BoE ducked a chance to be transparent about the consequences of a vote to Leave.  It chose to condition its forecast … Continue reading →

What we understand to have been so far left out of the HMT Brexit report is the impact of the potential ‘shock’ that a Brexit report would consider. I sketched suich a shock in an earlier post when I responded … Continue reading →

This follows reading Paul Krugman’s recent post.  I wasn’t there.  Too young, and never in America.  But, nevertheless, I’ll sketch my own version of what ‘monetarism’ means to me.  The belief that monetary policy mistakes were behind the business cycle … Continue reading →

Several times in monetary history, a government has tried to stem hyperinflation by re-denominating its currency.  Pesos become ‘New Pesos’. Naira become ‘New Naira’.  Lev become ‘New Lev’. This allows the authorities to cross off a few noughts on the … Continue reading →

Since Mark Carney took over the Governorship of the Bank of England in July 2013, expectations of the first hike in rates from 0.5 have been pushed further and further back. Accommodating this – with a few hiccoughs along the … Continue reading →

Here PK recommends, working through – pretty uncontroversially – the logic of the standard New Keynesian model, that Japan should try another burst of expansionary fiscal policy to raise inflation.  But that it should actually do it with enough force … Continue reading →

Ultimately I am against this charter for the same reason that I am against moves to legislate that the Fed should follow, or be monitored relative to a monetary policy rule. Macroeconomic fiscal policy is, crudely, about weighing the demands … Continue reading →

JP poses this question in yet another thought-provoking post. I’ll offer one thought, from the standard New Keynesian model of money, interest and prices.  In this model, the fact that money confers liquidity services is captured, rather crudely, by assuming … Continue reading →