The international dimensions of currency autonomy

Aca

What the collapse in interest rates means

Aca

"The U.S. Treasury rate just represents the rate at which people are willing to lend money to the U.S. government. So when the 10-year U.S. Treasury is at 1.53670 percent, it means people are willing to lend to the government, and receive only 1.5370 percent interest each year for the next 10 years."

Larry Summers recomienda gastar. David Glasner le comenta a Summers

The economic costs of fear

Brad DeLong

More on the recent anomaly in the real term structure of interest rates

David Glasner

Sobre la funcion de bienestar social

Dialogo de Brad DeLong

El modelo de Scott Sumner

Los economistas no necesitan modelos, dice Sumner. Lars Christensen le describe a Sumner el modelo que el (Sumner) usa. Noah Smith critica los modelos macroeconòmicos

Credit is what credit does: Finance and economic growth uncoupled

Aca

Sobre Robert Mundell

Paul Krugman describe las razones del Nobel de Mundell

Sobre la definiciòn de 'demanda'

Scott Sumner critica a Raghuram Rajan

Sobre repos

Aca "Legally, a repurchase agreement (repo) is a short-term transaction in which a borrower “sells” a security (such as a bond) to a lender, and simultaneously contracts to “repurchase” that security at a fixed price on a specific later date. Because the intent is for the borrower to repurchase the security from the lender rather than relinquish it completely, a repurchase agreement is functionally equivalent to a loan. The initial “sale” price of the security is the amount of the loan. The proceeds from the repurchase serve as repayment of the loan with interest. The security acts as the collateral."

Sobre la Sumner Critique

Ryan Avent y Scott Sumner. Ryan Avent responde. Does monetary policy make austerity irrelevant?

Sumner vs Krugman. Daniel Kuehn comenta

David Glasner dice que ya todo estaba en Keynes

Milton Friedman on the euro, inflation targeting and the zero lower bound, circa 2000

Aca

Cognitive democracy

Aca

Some euros are more equal than others

Aca

When did the dollar overtake sterling as the leading international currency? Evidence from the bond markets

Aca

The endangered public company

Rival versions of capitalism.

"Mark Zuckerberg, Facebook’s young founder, resisted going public for as long as he could, not least because so many heads of listed companies advised him to. He is taking the plunge only because American law requires any firm with more than a certain number of shareholders to publish quarterly accounts just as if it were listed."


The endangered public company

"Public companies triumphed because they provided three things that make for durable success: limited liability, which encourages the public to invest, professional management, which boosts productivity, and “corporate personhood”, which means businesses can survive the removal of a founder."

In praise of equity

The twilight of the public corporation

Es el problema de Europa el diferencial de competitividad?

Do prices matter? EU edition.

Antonio Fatas resume el debate

Otro anàlisis (màs viejo)

Brad DeLong

Foro: How markets crowd out morals

Aca A democracy or a political marketplace?

Sobre la balanza de pagos

Parte I. Parte II

Scott Sumner critica a MMT

Aca "But there’s one problem with relying on interwar analysis—it’s very much a product of its time. Prior to WWII, pure fiat money regimes were treated as pathological cases, associated with hyperinflation. Most currencies were either fixed to gold, or expected to be fixed in the near future. Studies have shown that the expected rate of inflation is roughly zero under a commodity money exchange, which is just another way of saying the expected change in the relative price of gold was roughly zero. This had many important consequences for monetary policy: 1. There was almost no Fisher effect in interest rates. This meant that changes in nominal interest rates were probably a better indicator of the stance of monetary policy than today. (Although still far from ideal.) 2. Liquidity traps were more likely for two reasons; expected inflation was quite low, and the monetary authority could not credibly commit to a higher inflation target. That made fiscal stimulus relatively attractive. 3. The Phillips curve was more stable. 4. The nominal/real distinction was less important. The concept of the super-neutrality of money was not well understood."

Economists don't understand science and technology

Aca

Lecciones para Europa de la union polìtica de Estados Unidos

Acemoglu y Robisnon sobre la economìa polìtica de la centralizacion del poder en el nacimiento de EEUU

Hume on hold? Consequences of not abolishing Eurozone national central banks

Aca

Shall we target inflation with fiscal policy?

Scott Sumner

Inflation targeting is not working

Simon Wren-Lewis. Jeffrey Frankel: The death of inflation targeting

Is inflation targeting really dead?

David Beckworth

Nominal GDP targeting could take the place of inflation targeting

Jeffrey Frankel y David Beckworth

Central banks can phase in nominal GDP targets without losing the inflation anchor: Propuedtas de Jeffrey Frankel para implementar NGDP targeting

What adjusts?

Interesante

The housing market and the case for higher inflation targets

Menzie Chinn

Did the government cause the Great Depression?

Scott Sumner vs Brad DeLong

Liquidity risk and credit in the Financial Crisis

Paper de la Fed de San Francisco

Consejos de Warren Buffet

Aca "If I could pick one thing to read it would be all of Buffett’s annual letters including his partnership letters. The education from those letters is more valuable than just about any investment book you’ll find. The partnership letters are here and the annual BRK letters are at the Berkshire website."

A policy for industry

Aca

Simon Johnson recomienda libros de historia económica

Aca

International monetary disorder – how policy mistakes turned the crisis into a global crisis

Lars Christensen

On negative interest rates

Aca. Bill Woolsey comenta

Which sticky price?

Aca

Exchange rates are not truly floating when we target inflation

Lars Christensen

Crìtica de Brad DeLong (y Larry Summers) a los modelos RBC

Aca. Karl Smith tambien

Sobre ETFs

Aca

Identity economics

Nick Rowe

Central Bank reserve creation in the era of negative money multipliers

Aca Are centrl banks creating the 'wrong' kind of money?

James Tobin got it right

David Glasner Yeager vs Tobin

When are interest rates expected to normalize?

Brad DeLong y Paul Krugman

How much do expectations matter?

Nick Rowe

NGDP targeting and shifts in demand

Aca A scenario where a price level target is superior

Regulatory reform since the financial crisis

Discurso de Dan Tarullo

"The New Deal reforms, engrafted onto preexisting restrictions in the National Bank Act and state banking laws, largely confined commercial banks to traditional lending activities within a circumscribed geographic area, while protecting them from runs and panics through the provision of federal deposit insurance and Federal Reserve discount window access. At the same time, investment banks and broker-dealers were essentially prohibited from affiliation with traditional banks. This approach fostered a system that was, for the better part of 40 years, very stable and reasonably profitable, though not particularly innovative in meeting the needs of savers, on the one hand, and of households and businesses wishing to borrow funds, on the other.

Beginning in the 1970s, the separation of traditional lending and capital markets activities began to break down under the weight of macroeconomic turbulence, technological and business innovation, and competition. The dominant trend of the next 30 years was the progressive integration of these activities, fueling the expansion of what has become known as the shadow banking system, including the explosive growth of securitization and derivative instruments in the first decade of this century.

This trend entailed two major, and related, changes. First, it diminished the importance of deposits as a source of funding for credit intermediation in favor of capital market instruments sold to institutional investors. Over time, these markets began to serve some of the same maturity transformation functions as the traditional banking systems, which in turn led to both an expansion and alteration of traditional money markets. Ultimately, there was a vast increase in the creation of so-called cash equivalent instruments, which were supposedly safe, short-term, and liquid. Second, this trend altered the structure of the industry, both transforming the activities of broker-dealers and fostering the emergence of large financial conglomerates.

Though motivated in part by regulatory arbitrage, these developments were driven by more than regulatory evasion: Such factors as the growth and deepening of capital markets and the rise of institutional investors as guardians of household savings accelerated the fracturing of the system established in 1933. Whatever the relative importance of these causal factors, however, one thing is clear: Neither the statutory framework for, nor supervisory oversight of, the financial system adapted to take account of the new risks posed by the broader trend. On the contrary, regulatory change for the 30 years preceding the crisis was largely a deregulatory program, designed at least in part to address the erosion of banks’ franchise value caused by the rapid growth of credit intermediation through capital markets."

Krugman vs Friedman

Post de David Glasner

U.S. considers issuing floating rate debt

Aca John Cochrane opina

Bad models mistook housing bust for dot-com bubble

Peter Orszag

Banks as creators of money

Aca

A critique of Keynes

De Robert Paul Wolff. Parte I. Parte II. Conclusion