Did Market Monetarists Accurately Predict Low Inflation?

David Beckworth stated on Twitter that Market Monetarists “knew all along inflation would not be a problem”.  It’s true.  The Market Monetarists have long been predicting low inflation and even deflation.   See this 2009 piece by Scott Sumner titled “Deflation is our Biggest Worry – Not Inflation”.  So yes, the Market Monetarists nailed this one, right?  Not […]

The Bank of England Debunks the Money Multiplier

Regular readers will be more than familiar with the debunking of the money multiplier and the concept that banks don’t lend out reserves or deposits (see here & here), but it’s nice to see it catching on in places more important than this lowly blog.  A new research report out of the Bank of England debunks the money multplier in […]

The Sankowski Solar Boom

The Sankowski Solar boom – it’s in full force: “2013 was a banner year for clean energy and the U.S. solar industry was no exception. California, the nation’s solar standout, more than doubled its rooftop solar installations last year from 1,000 megawatts (MW) to 2,000 MW. To put this number in perspective, writesBernadette Del Chiaro of […]

Monetary Realism is About Choosing Knowledge Over Ideology

“skate where the puck’s going, not where it’s been”. – Wayne Gretzky There’s a famous saying that’s repeated on rare occasion when the fiscalist view of the world dominates policy – “we’re all Keynesians now”.  It’s generally a misleading way of labelling an entire population and such declarations are usually the views of biased policy thinkers.  Now, […]

Why Do Economists Obsess over Government Money?

I was reading this post by Scott Sumner in which he concluded with the following: “This post has already run too long, so I’ll do the quantity theory of money in the next post.  We’ll see how the central bank can control the value of money (and NGDP), by changing the currency stock.” I just […]