tag:blogger.com,1999:blog-5713178645208582139.post5335081215111773134..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Mohamed El-Erian vs. Bruce Bartlett on the FedDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-23607398598861351902011-10-14T17:57:43.953-05:002011-10-14T17:57:43.953-05:00I have an incredibly smart former boss, Ramin Tolo...I have an incredibly smart former boss, Ramin Toloui, who last I knew worked for PIMCO. I would love to know if he holds similar views to El-Erian and Gross.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-28179322373434171082011-10-14T13:48:38.715-05:002011-10-14T13:48:38.715-05:00In his 4/11/2011 NRO primer, David writes: ' I...In his 4/11/2011 NRO primer, David writes: ' In contrast, a rigid inflation target of, say, 2 percent in conjunction with the 5 percent real economic growth would require 7 percent nominal-GDP growth, or a potentially destabilizing surge in spending. Better to ... allow the temporary disinflation than to have a boom in spending.' Why does the 2 percent disinflation unambiguously dominate Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-37638775466541847372011-10-14T10:42:36.141-05:002011-10-14T10:42:36.141-05:00I wonder about those PIMCO guys.
They were bettin...I wonder about those PIMCO guys.<br /><br />They were betting heavily on Treasury yields soaring earlier in the year. I figured that might be a bet on aggressive Fed easing, because they understood that the lack of AD was the problem, and that the Fed could fix it, and that it should cause Tsy prices to fall not rise.<br /><br />Maybe they do still get it, but they are playing dumb because the Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-4175034547136718062011-10-14T09:28:17.325-05:002011-10-14T09:28:17.325-05:00Right David!Right David!Lars Christensenhttps://www.blogger.com/profile/08409946182659964026noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54152374821315252872011-10-14T08:08:13.068-05:002011-10-14T08:08:13.068-05:00I was not surprised. Pimco has twice made very pub...I was not surprised. Pimco has twice made very public bearish calls on US treasuries which they then had to reverse both times. Apparently they don't understand that low rates is not the same as easy money. My guess is that their thinking has been more influenced by republican dogma than by economic theory.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-71372317944787158132011-10-14T05:48:32.847-05:002011-10-14T05:48:32.847-05:00Bank of England, targeting NGDP?
Charles Bean, Dep...Bank of England, targeting NGDP?<br />Charles Bean, Deputy Governor of the Bank of England, October 2009:<br />"Moreover, the ultimate aim of the [QE] policy is to get the annual rate of growth of nominal spending in the economy back to the 5% or so that it averaged during the first decade of the Monetary Policy Committee’s existence and which is consistent with inflation at target and Alfrednoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77002593342544509362011-10-13T18:20:57.643-05:002011-10-13T18:20:57.643-05:00I was also shocked by El-Erian's reaction to m...I was also shocked by El-Erian's reaction to my comment.<br /><br />Bruce BartlettAnonymousnoreply@blogger.com