Monthly Archives: March 2011

Taylor Rules on the Taylor Rule

The rule for nominal interest rate setting that John Taylor proposed in his 1993 paper “Discretion versus Policy Rules in Practice“, Carnegie-Rochester Conference Series on Public Policy 39, 195-214, has had an enormous influence in the macroeconomics profession.  It is … Continue reading

Share
Posted in Economists, Macroeconomics, Monetary policy | Tagged , , , , , , , , | 1 Comment

Temporary and Permanent Ricardian Confusion: Going Comfortably Numb

Spurred by the heated debates about the need for fiscal stimulus in the US, the issue of Ricardian Equivalence has taken center stage in the economic blogging sphere recently. While it is an impossible task to identify any exact line … Continue reading

Share
Posted in Economists, Macroeconomics | Tagged , , , , , , , , , , , | 4 Comments

The Fed and the ECB: “Spurious Bedfellows”

Some days ago, I wrote about an interesting post by Gavin Davies on his Financial Times blog, where he argued that European monetary policy, through the actions of the German Bundesbank and now the European Central Bank, follows the US … Continue reading

Share
Posted in Economists, Macroeconomics, Monetary policy | Tagged , , , , , | Leave a comment

Freakonomics: The Movie Review

In 2005, economist Steven D. Levitt and journalist Stephen J. Dubner published the book Freakonomics, which in a remarkable lucid manner demonstrated the power of economic thinking to a wide audience. Focusing on the importance of incentives, the authors guided … Continue reading

Share
Posted in Economics, Movies | Tagged , , , , , , , , | Leave a comment

Brady replaces Woods in Principles

From N. Gregory Mankiw’s description of the new material in the new edition of his “Principles of Economics“: “Chapter 3 Tiger Woods changed to Tom Brady in in-text example.” This must be the final blow to Tiger Woods’ status as a … Continue reading

Share
Posted in Macroeconomics | Tagged | Leave a comment

Gavin Davies on the Fed and the ECB

Gavin Davies has an interesting post on his Financial Times blog. It is entitled “Strange bedfellows – the Fed and the ECB” and it discusses the co-movements between the Federal funds rate and the Deutschmark/Euro policy rate since 1987. There … Continue reading

Share
Posted in Economics, Macroeconomics, Monetary policy | Tagged , , , , | Leave a comment

ECB, SMP (II): Direct vs. secondary purchases

In my recent post on the ECB’s Securities Market Programme (SMP), I noted that the programme was in violation of the Treaty of the European Union. I based this on Article 21.1, which states: “. . . overdrafts or any … Continue reading

Share
Posted in Economics, Macroeconomics, Monetary policy | Tagged , , | Leave a comment

ECB, SMP, ETC. Who pays for what?

After the financial crisis hit in 2008, new acronyms have been appearing at a rapid pace around the globe. These mainly describe the various measures taken by the world’s central banks to offset the troubles caused by the crisis. Many … Continue reading

Share
Posted in Economics, Macroeconomics, Monetary policy | Tagged , , , , , , , , | Leave a comment