Comments on: Dear liberal overlords http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/ Sharpening my knife Tue, 18 Oct 2011 07:32:30 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Gabriel http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8229 Gabriel Mon, 16 Nov 2009 23:55:52 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8229 Oh, yeah, and that guy didn’t win the Noble prize in monetary macroeconomics either. Oh, yeah, and that guy didn’t win the Noble prize in monetary macroeconomics either.

]]> By: Gabriel http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8224 Gabriel Mon, 16 Nov 2009 12:38:43 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8224 (1) Are they still paying interest on reserves? (2) The zero bound is a problem for a particular instrument, so, yeah, do the obvious and use other instruments. (3) Hello, Mr. Treasury, here's a blank check, go crazy. (4) For economists, making inflation is either (i) far too easy, or (ii) impossible, depending on the state of the world, this holds for the same economist. (5) Monetary is probably one of the weakest of the fields mostly because it's, by far, one of the most "reduced form" fields. For example, Calvo + Taylor rule captures a whole bunch of 0% of recent events. (1) Are they still paying interest on reserves?

(2) The zero bound is a problem for a particular instrument, so, yeah, do the obvious and use other instruments.

(3) Hello, Mr. Treasury, here’s a blank check, go crazy.

(4) For economists, making inflation is either (i) far too easy, or (ii) impossible, depending on the state of the world, this holds for the same economist.

(5) Monetary is probably one of the weakest of the fields mostly because it’s, by far, one of the most “reduced form” fields. For example, Calvo + Taylor rule captures a whole bunch of 0% of recent events.

]]> By: gabe http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8223 gabe Mon, 16 Nov 2009 07:22:27 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8223 Wow, just saw this: http://www.federalreserve.gov/RELEASES/H3/Current/default.htm The preliminary excess reserves numbers for the last few weeks shows excess reserves of over 1 trillion dollars! (Look at November 4p. then Excess). If that's not a liquidity trap, it sure feels like one. (It's at least weak monetary policy) Wow, just saw this:

http://www.federalreserve.gov/RELEASES/H3/Current/default.htm

The preliminary excess reserves numbers for the last few weeks shows excess reserves of over 1 trillion dollars! (Look at November 4p. then Excess). If that’s not a liquidity trap, it sure feels like one. (It’s at least weak monetary policy)

]]> By: gabe http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8222 gabe Mon, 16 Nov 2009 07:06:39 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8222 What I really don't get about Krugman is that he believes that the US is in a liquidity trap AND that the Fed can commit to higher inflation. But if there's a liquidity trap, then how does the Fed commit to higher inflation? If the Fed's monetary policy is currently impotent, then how can it credibly commit to affect the price level? When you're stuck, you're stuck. I've never seen him explain that. At least Sumner doesn't believe in liquidity traps, so he's internally consistent. What I really don’t get about Krugman is that he believes that the US is in a liquidity trap AND that the Fed can commit to higher inflation. But if there’s a liquidity trap, then how does the Fed commit to higher inflation? If the Fed’s monetary policy is currently impotent, then how can it credibly commit to affect the price level? When you’re stuck, you’re stuck. I’ve never seen him explain that.

At least Sumner doesn’t believe in liquidity traps, so he’s internally consistent.

]]> By: gabe http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8221 gabe Mon, 16 Nov 2009 07:03:33 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8221 Krugman-Sumner for joint Fed Chairman in 2013! :D (When Bernanke's term expires) Krugman-Sumner for joint Fed Chairman in 2013! :D
(When Bernanke’s term expires)

]]> By: pushmedia1 http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8220 pushmedia1 Mon, 16 Nov 2009 05:01:10 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8220 Huh? Are you complaining about Krugman's modelling? Huh? Are you complaining about Krugman’s modelling?

]]> By: Gabriel http://www.ambrosini.us/wordpress/2009/11/dear-liberal-overlords/comment-page-1/#comment-8219 Gabriel Mon, 16 Nov 2009 03:29:04 +0000 http://www.ambrosini.us/wordpress/?p=1290#comment-8219 Let's not go too gaga over a particular type of monetary modeling that's driving those claims... Let’s not go too gaga over a particular type of monetary modeling that’s driving those claims…

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