Michael D. Bordo: An Historical Perspective on the Quest for Financial Stability
13 May 2020 Leave a comment
in budget deficits, business cycles, econometerics, economic growth, economic history, financial economics, fiscal policy, global financial crisis (GFC), great depression, great recession, inflation targeting, international economics, job search and matching, macroeconomics, monetarism, monetary economics Tags: new classical macroeconomics
Free Banking and the Federal Reserve
13 May 2020 Leave a comment
in Austrian economics, business cycles, economic history, financial economics, macroeconomics, monetary economics Tags: free banking, monetary policy
Stephen Williamson puzzles over quantitative easing
09 May 2020 Leave a comment
in business cycles, financial economics, global financial crisis (GFC), great recession, macroeconomics, monetary economics
Amazon 1st made a profit in 2006
08 May 2020 Leave a comment
in economic history, entrepreneurship, financial economics, industrial organisation, survivor principle Tags: creative destruction
An explanation of Wallace neutrality for quantitative easing
01 May 2020 Leave a comment
in financial economics, macroeconomics, monetary economics
From https://books.google.co.nz/books?id=6kbCDwAAQBAJ&pg=PA283&lpg=PA283&dq=neil+wallace+open+market+operations&source=bl&ots=chwhTeUEA6&sig=ACfU3U1IPVipUeeC0tEa-phUVH7izIhT5A&hl=en&sa=X&ved=2ahUKEwihtKGGsZLpAhUdzDgGHSG4D5A4ChDoATACegQIChAB#v=onepage&q=neil%20wallace%20open%20market%20operations&f=false and https://www.jstor.org/stable/1802777?seq=1#metadata_info_tab_contents
Modigliani-Miller theorems for open market operations describe conditions under which central bank portfolio rearrangements will have no consequences for allocations, relative prices, or the time path of the price level.
Thomas Sargent 2013 MACROECONOMIC THEORY AND THE CRISIS
01 May 2020 Leave a comment
in budget deficits, business cycles, economic growth, economic history, Euro crisis, financial economics, fiscal policy, global financial crisis (GFC), great depression, great recession, macroeconomics, Milton Friedman, monetarism, monetary economics, Robert E. Lucas Tags: sovereign debt crises, sovereign defaults
John Cochrane on quantitative easing not mattering much
01 May 2020 Leave a comment
in business cycles, financial economics, macroeconomics, monetary economics, politics - USA
Majority saved $750 #COVID19 stimulus payment! Friedman’s permanent income hypothesis rules
01 May 2020 Leave a comment
in budget deficits, business cycles, financial economics, fiscal policy, macroeconomics, Milton Friedman, monetary economics, unemployment Tags: offsetting behaviour, permanent income hypothesis, The fatal conceit, unintended consequences
John Cochrane explains helicopter drops
01 May 2020 Leave a comment
in financial economics, fiscal policy, macroeconomics, Milton Friedman, monetarism, monetary economics, politics - New Zealand, public economics
Stephen Williamson on quantitative easing
29 Apr 2020 Leave a comment
in financial economics, monetary economics
Do economists ignore the impact of debt on the business cycle?
29 Apr 2020 Leave a comment
in business cycles, economic history, financial economics, global financial crisis (GFC), great depression, great recession, history of economic thought, macroeconomics, monetarism, monetary economics Tags: Keynesian macroeconomics, New Keynesian macroeconomics
Edward Prescott on the unimportance of monetary policy
29 Apr 2020 Leave a comment
in business cycles, economic history, Edward Prescott, financial economics, fiscal policy, global financial crisis (GFC), great depression, great recession, history of economic thought, macroeconomics, monetary economics
See lecture at https://www.mediatheque.lindau-nobel.org/videos/37267/panel-conditions-monetary-fiscal-policy/laureate-prescott
Edward Prescott, co-recipient of the Nobel Prize in 2004, took a different view in a presentation with the title ‘The Unimportance of Monetary Policy and Financial Crises on Output and Unemployment’. He cited financial crises that saw countries experiencing contrasting outcomes at the same time: the US and Asia in the 2008 crisis; Chile and Mexico in 1980; and Scandinavia and Japan in 1992.
‘Financial crises do not impede development,’ he claimed. While the 2008 financial crisis was localised in North America and the euro area, there was a short recession and quick recovery in Japan, Taiwan and South Korea and no recession in Scandinavia and Australia. ‘Countries where fiscal policy was irresponsible had problems’, he maintained. ‘Fiscal responsibility is crucial: to spend is to tax and to tax is to depress. That’s what happens every time.’
Utopia, you are standing in it! 
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