“Lost”
The Fed really needs a makeover! If it isn’t bad enough that the mainstream model is driven by two unobservable variables — the neutral rate and the real rate — James Bullard wants to convince us that...
View Article“Money makes the world go round” …but can also bring it crashing down
So I take issue with what Brad DeLong writes: The dot-plots tell us that the FOMC now thinks that it is headed for a 3% Treasury Bill rate–at the upper end of this range, but still very far from a 5%...
View ArticlePost-Brexit, what will Janet Yellen’s next excuse be?
A James Alexander post Well the British have voted for Brexit. We shall see how it turns out. Carney must not defend sterling Market Monetarists must hope that Mark Carney doesn’t seek to defend the...
View ArticleBrexit? BIS Calls For Tighter Money
A Benjamin Cole post “Monetary policy is running out of room for maneuver,” said Hyun Song Shin, head of research at the Bank of International Settlements (BIS), in a June 26 interview, three days...
View ArticleBrexit is noise in the bigger picture of monetary strangulation
A James Alexander/Marcus Nunes post Independent of Brexit, the bigger issue remains that all three currency blocs – USD, Euro and British Pound – are seeing low NGDP growth, too low for comfort. Small...
View ArticleClik here to view.
Speaking up for the Euro Area
A James Alexander post Our fellow Market Monetarists seem to be struggling a bit with making sense of the enormity of the post-Brexit market moves. It’s actually a curse sometimes being a Market...
View ArticleRaghuram Rajan: A Globalist Who Supports Helicopter Drops? David Beckworth...
A Benjamin Cole post With the insouciance of a true international central banker, Raghuram Rajan, the outgoing Governor of the Reserve Bank of India recently opined in Project Syndicate that “what we...
View ArticleClik here to view.
One Kid is back. The others on the way
Stock Indices turnaround. Note how the “German Kid” is slow!
View ArticleClik here to view.
Do you believe in miracles?
From the WSJ: “At a time when the global economy is doubting itself in the face of Brexit, the U.S. consumer is emerging with a smile on his face,” said Gregory Daco, head of U.S. macroeconomics at...
View ArticleCarney helps clear a mess he partly made
A James Alexander post Mark Carney gave a speech at 4pm today that clearly eased monetary policy and raised NGDP growth expectations. Sterling immediately fell 1%, gilts rose 1% and stocks surged. What...
View Article