Monetary Realism

Understanding The Modern Monetary System…

Recent Posts
Popular Posts

Recent Posts

ajax-loader

The Unpleasant Fiscal Arithmetic of Eurozone QE with Risk of Sovereign Defaults

Paul De Grauwe has written about potential fiscal effects from an anticipated ECB quantitative easing (QE) program: http://voxeu.org/article/quantitative-easing-eurozone-its-possible-without-fiscal-transfers The analysis is excellent to a point, but doesn’t go far enough. In fact, there are problems with the methodology and the conclusion. The subject involves complex aspects of Eurozone monetary policy – multiple sovereigns, the prospect… Read More

Why NGDP Targeting Won’t Work in Reality

Congratulations to Scott Sumner on his new career and fund raising for a NGDP futures market. It looks like his dream of NGDP targeting could really come to fruition at some point. That’s a good thing because it means we might actually get to see whether there’s some real world effect behind all the theoretical talk.… Read More

Scott Sumner has a New Job

Scott Sumner has a new job where he will be free to focus on monetary policy and NGDP futures. Good for him. NGDP isn’t a terrible way to help think about monetary policy. However, NGDP futures are a dead end. They cannot work. I feel a bit bad for the person who is funding Scott S… Read More

Monetarism

This is rather impressive: “Cash still exists in rather surprising quantity – about a trillion dollars, or more than $3,000 per capita, 77% of it in hundred-dollar bills. But you and I, corporate businesses, and financial markets use trivial amounts of cash. The legal, and especially corporate and financial economies, have moved to electronic, interest-bearing… Read More

ajax-loader