We keep hearing concerns about “currency wars” around the wold, with the blame being put on Quantitative Easing. In fact our Reserve Bank even came out to complain about QE. But to be honest, this argument is nonsensical unless you are explicitly forecasting “monetary policy failure” overseas. Lets go back to Essays on the Great […]
Following the Jackson Hole speeches there was this post over at Uneasy Money. The money section for me is: The reductions in long-term interest rates reflect not the success of QE, but its failure. Why was QE a failure? Because the only way in which QE could have provided an economic stimulus was by increasing […]
Over at Worthwhile Canadian Initiative, Nick Rowe bemoans the fact that economists keep ignoring the “very short run”, and the transition from that to the short-run. In the very short-run, we may view a shock (an increase in demand) and interpret as noise – it is only when the shock persists that we may respond. […]
Eric Crampton over at Offsetting has managed to wrangle the NZ econblogger community some space over at Sciblogs. I’m very impressed that Sciblogs has allowed this, and it shows that they recognise that their desire to add to the policy debate in NZ can be helped by having an economist feed loitering around. Although I […]
After seeing David Parker claim that inflation targeting was dead, I felt obliged to chip in with my two cents – which Rates Blog kindly allowed me to do. In the article I looks at the critique of RBNZ policy based on “imported price spikes” and “credit flows” and point out how the RBNZ framework […]
Time to ask another question. I was wondering, how much does the form of explanation in economics appear to take the form of abductive reasoning? Often in economics, we will observe a stylised fact. We then have a method that can explain that fact in a myriad of ways. We will then build a model […]