Comments on: Current History http://www.ambrosini.us/wordpress/2009/03/current-history/ Sharpening my knife Tue, 18 Oct 2011 07:32:30 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: pushmedia1 http://www.ambrosini.us/wordpress/2009/03/current-history/comment-page-1/#comment-7169 pushmedia1 Fri, 27 Mar 2009 20:23:23 +0000 http://www.ambrosini.us/wordpress/?p=1095#comment-7169 No, but I do think he thinks the Fed has unlimited power to control nominal variables. There's no such thing as liquidity traps. Fears of one create excessively contractionary policy. Maybe Sumner thinks there would have been a recession anyway, because of sectoral reallocation, but tight money policy made it much worse. I don't know how he would have dealt with the 70's. No, but I do think he thinks the Fed has unlimited power to control nominal variables. There’s no such thing as liquidity traps. Fears of one create excessively contractionary policy.

Maybe Sumner thinks there would have been a recession anyway, because of sectoral reallocation, but tight money policy made it much worse. I don’t know how he would have dealt with the 70’s.

]]> By: ssendam http://www.ambrosini.us/wordpress/2009/03/current-history/comment-page-1/#comment-7168 ssendam Fri, 27 Mar 2009 17:08:43 +0000 http://www.ambrosini.us/wordpress/?p=1095#comment-7168 Sumner is like the opposite of Ed Prescott - everything is due to the central bank, and nothing is real. Sumner is like the opposite of Ed Prescott – everything is due to the central bank, and nothing is real.

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