Market Monetarism

Archive for Market Monetarism

America’s Platinum Express

I have a question and a comment: ==> The “trillion dollar coin” thing is just because a billion is too little, and a quadrillion is too much, right? For example, there’s nothing to stop them from using this “option” but doing so by minting, say, 10 coins each with a face value of $100 billion? […]

As Usual, Sumner Ignores Micro

In this post Scott Sumner shows he would make a great talent agent: Back in 2009 I argued that only elite monetary economists should sit on the FOMC. Some of its current members are not even monetary economists, elite or otherwise. They are unqualified people serving in the most important economic policy position on the […]

Rowe Ruh Roh

Sorry, I was trying to come up with the analog of a Krugman Kontradiction for Nick Rowe, and this was it… Some of you may recall that I happily linked to Nick Rowe explaining just how nutty was Paul Krugman’s praise of a hypothetical bond vigilante attack on the US. (Remember, Brad DeLong had to […]

Richmond Fed President Can Talk the Talk on Cantillon Effects

Richmond Fed President Lacker dissented from the recent Fed decision, and said in part: “I also objected to the continuing purchase of agency mortgage-backed securities. If asset purchases are appropriate, the FOMC should confine its purchases to U.S. Treasury securities. Purchasing agency mortgage-backed securities can be expected to reduce borrowing rates for conforming home mortgages […]

Potpourri

==> After reading my scathing critique, David Frum will wish he had added another axis of evil. ==> My interview on MMT matters. I am tough, but I am fair. (?) ==> Jerry O’Driscoll catches something that I noticed too: The Fed’s announcement seems to turn a ceiling into a floor. (HT2 the eagle-eyed von […]

Bank of England & Carney: This Doesn’t Sound Good

Scott Sumner links to this article from the Financial Times. I’m feel queasy. Take a look: The [UK] Treasury opened the door to a more aggressive monetary policy on Wednesday, as aides to the chancellor welcomed the next Bank of England governor’s radical views on stimulus measure for flagging economies. In a speech on Monday, […]

One More on Cantillon for 2012

[UPDATE below.] Last post this year from me on Cantillon, with the usual disclaimer that if Paul Krugman jumps in, all options are back on the table… In another comment Bill Woolsey says: In my view, Richmond’s short quotation and your short quotation about Wall Street restaurants were very much wrong and focus on from […]

Bill Woolsey Replies on Cantillon Effects

Bill Woolsey opened a long comment in my last post by writing, “Suppose the government decides to increase tank production. It might fund this by printing currency, by borrowing money, or by raising taxes. The tank manufacturers benefit the same amount regarless of this choice.” Hang on a second, fellas. You are changing the question. […]