Market Monetarism

Archive for Market Monetarism

Quick Project for Those Versed in Financial Markets

OK kids, here’s what I want. To sweeten the pot, the first person to post in the comments has the right to ask me for a $20 PayPal payment. And if someone’s comment is held up by the blog awaiting moderation, we’re going with the first person whose comment is visible. So keep that in […]

Quick Response to Market Monetarists on Cruz

I really have to be quick because I need to get on the road, so I admit I’m not doing this justice. But I just want to note the progression of the argument here: 1) Ted Cruz said, “In the summer of 2008…the Federal Reserve told markets that it was shifting to a tighter monetary […]

Science Is Prediction: Back-Testing the Market Monetarist-Endorsed Ted Cruz Explanation for the 2008 Crash

(Please don’t lecture me on the post title: I am making a wisecrack related to Dan’s very useful advice on a previous post.) Recently Ted Cruz was grilling Janet Yellen. So far, so good. But then he said: Senator Cruz: In the summer of 2008, responding to rising consumer prices, the Federal Reserve told markets […]

Scott Danger Sumner

(Get it?) Am I the only one who finds this an odd set of statements from the resident monetary expert at EconLog? I’ll add my bold so you see where I’m coming from. Everyone seems to assume that the zero lower bound is the key problem. But how do we know this? Has the lower […]

Sumner, the Gold Standard, and the Great Depression

Scott Sumner’s new book on the Great Depression is coming out December 1. This is definitely something I will get and digest next year, as I’m swamped. I believe the blurbs when they say this will be a classic in the field. Among other things, Scott has (apparently) interspersed newspaper clippings and real-time financial market […]

Responding to David Beckworth on the Canadian “Expansionary Austerity” of the 1990s

David Beckworth wrote up a nice response to my previous Mises CA post on the Canadian fiscal turnaround of the 1990s. At this point, I just have two main replies: (#1) ==> The whole point of my previous Mises CA post was to show that what David had earlier referred to as an expansion in […]

DeLong Gives Me Whiplash

[Two UPDATEs below, one embedded and one at the end.] I have to be brief, so if you’re a newcomer to this blog, you won’t get much from this. But back in early 2009, Brad DeLong was very skeptical about the ability of the Federal Reserve to rescue the world economy from the ravages of the […]

A Possible Scenario In Which the SNB Wouldn’t Want 100% of GDP in Euros

What is really odd in the econoblogger debate over the SNB’s recent decision to drop the Swiss franc/euro peg is that some people (including prominent monetary economists) are acting like there is not even a possible danger here. Bill Woolsey actually asked me in the comments here at Free Advice: “Is the argument here that […]