Search Results for: inflation target

This is prompted by SWL’s mainlymacro post on Kocherlakota’s comments about the Fed’s objectives. Kocherlakota and Simon want clarification that the target is symmetric. Simon suspects that the asymmetry in the ECB’s objective implied by the words ‘close to but … Continue reading →

Paul Krugman steps in to clarify the distinction between stagnation in growth rates brought upon by a reduced growth in supply – population, technology, participation – and demand.   His piece was prompted by Gavyn Davies’ reporting on some econometrics that … Continue reading →

Draghi’s press conference today left many questions hanging in my mind. Here are a bunch of disjointed responses, recapping on tweets earlier today. Why didn’t he mention an amount in announcing the start of purchases of private sector assets? Is … Continue reading →

John Cochrane recently responded on his blog to the news that Congress were going to debate that the Fed be required by legislation to choose a monetary policy rule, and stick to it, justifying when and why it departs from … 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 →

The Fed recently made its workhorse model FRB-US downloadable, with a dataset, code, everything you need to take a close look at what Governors say and what the staff have been doing for them.  The Bank of England should do … Continue reading →

Draghi recently commented that ‘we are not seeing deflation’.  He elaborated.  They weren’t ‘seeing’ people postpone purchases until prices fell.  The ECB were ready to act [presumably when they did ‘see it’].  But there was no need to act further … Continue reading →

Today was an exciting day for Bank of England junkies, in fact for anyone who gets off on central banking and monetary policy communication [cue to those of you who don’t to quit reading this].  The Monetary Policy Committee ‘updated’ … Continue reading →

The last few days have seen the UK Chancellor George Osborne and Ed Balls try to out-do each other in promising a fiscal surplus.  Labour have also put on the table the proposal to bring back the 50% income tax … Continue reading →