David Beckworth

Archive for David Beckworth

Market Monetarists: The Good, the Bad, and the Ugly

Actually my title doesn’t really make sense; I couldn’t think of anything clever. I really liked this David Beckworth post, talking about the breakdown of the Fed’s “floor system.” In fact, I liked it so much that I based my article in the forthcoming issue of The Lara-Murphy Report on it. So score +1 for […]

Potpourri

==> This is an old but very interesting post from Mark Bahner on atmospheric CO2 and how quickly it could be removed if need be. ==> A very interesting post from David Beckworth on the yield curve (HT2 Scott Sumner). But most important–look at this analysis from Ben Bernanke back in 2006!! Not only was […]

Open Borders and NGDP Targeting: A Numerical Example

In my last post, in which I argued that Open Borders plus NGDP (or even total labor compensation) targeting would lead to disaster, I fired off some quick numbers that (although technically not wrong) made it look as if I were missing the basic logic of Sumner’s framework. Thus, David Beckworth in the comments said: […]

David Beckworth Adopts Scott Sumner Criterion for “Market Expectations”

In this post, David Beckworth uses federal funds futures contracts to glean information about “the market”‘s expectations of future monetary policy shifts. Obviously there are caveats about reasoning from an expected price change, but I think this is a good avenue for the Market Monetarists to win skeptics over. In particular, if people in (say) […]

Step #4 In My Dispute With Beckworth: The Market (Apparently) Lowered Forecast of Future Fed Funds After Critical 2008 Meetings

I have a running response to David Beckworth’s defense of Sen. Ted Cruz’s remarks concerning the causes of the 2008 financial crisis. (Here are links to #1, #2, and #3.) This, #4, is my final argument, though I may do follow-ups based on reactions from David and/or his fans in the comments. In earlier steps […]

Step #3 In My Dispute With Beckworth: Moving From Davie on Interest Rates to David on Interest Rates

First, a recap: ==> In Step #1 I made the obvious point that if an employer in late October says that the paycheck will be $1000 higher in November than previously expected, and the paycheck in December will be $700 higher than previously expected, that clearly this is a more generous policy, relative to the […]

Step #1 in My Dispute With Beckworth: Defining the Stance of Future Policy

I realize that when I’m being too cutesy, it’s not clear what my overall purpose is. So let me first state the overall situation, and then proceed to the (narrow) point of this particular post. Overall: Recently, David Beckworth wrote a post defending Ted Cruz’s remarks about the Fed in 2008. David had two main […]

Tackling Ted Cruz

In my latest piece at Mises.org I take on the notion that the Fed’s announcement of “tight” money in the summer of 2008 is ultimately to blame for the financial crisis. I am running around with holiday travel but hopefully by the weekend I will return to my earlier post (here on the blog) about […]