tag:blogger.com,1999:blog-5713178645208582139.post552632734307116852..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: James Pethokoukis on NGDP TargetingDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-23202241928729044252012-01-23T11:30:24.295-06:002012-01-23T11:30:24.295-06:00I have a problem with a level target. All the comm...I have a problem with a level target. All the commentary I have seen from advocates of level targeting take the peak level of 2007 as "normal" and then tack on 5% growth rate (or so) to come up with a target. The problem is the assumption that the peak consumption at the height of the biggest credit bubble in history was somehow "normal". NO. And who is to say that the normal Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-76260256350315812002012-01-23T02:47:34.382-06:002012-01-23T02:47:34.382-06:00The economists who obsess about inflation are typi...The economists who obsess about inflation are typically those who live in the world of fixed income research - they work in the Bond markets in other words. As an economist ( as opposed to a credit risk analyst) you only add value to the process if you contribute to the real return argument with your "insights" into inflation. They obsess about inflation because that it what they are Tinxxnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-78644467749223725502012-01-17T19:08:05.385-06:002012-01-17T19:08:05.385-06:00What is it with economists and their peevish fixat...What is it with economists and their peevish fixation--really, an unhealthy obsession--with inflation?<br /><br />I get the feeling that some economists live in abject terror of prosperity as it might possibly lead to inflation. <br /><br />The experience of 1982 to 2008, of 26 years of solid growth and moderate inflation between 2 percent and 6 percent. <br /><br />Of course, we should hustle Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-91011133719010225242012-01-17T18:19:46.874-06:002012-01-17T18:19:46.874-06:00Hubbard's, "timely manner" comment i...Hubbard's, "timely manner" comment is wrong for another reason: In a FFR targeting regime, the supply of bank reserves is always perfectly elastic. Whether the initial condition is zero in ER's or $10tr in ER's is therefore immaterial to the potential supply of bank reserves. Whatever banks need to support new deposit creation (i.e. lending) at a given FFR, the Fed will David Pearsonnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-70467200973825526862012-01-17T16:05:01.668-06:002012-01-17T16:05:01.668-06:00"[M]arkets [may] begin to worry that the Fed ..."[M]arkets [may] begin to worry that the Fed won’t be able to unwind its positions in a timely manner to prevent an uncontrolled inflation surge."<br /><br />The reflects a concern I have. Starting from deep recession when a lot of new money has been created in order to get NGDP back on target is there not a possibility that at some point confidence reemerges and people actually want robhttp://robseconomicsblog.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-74274319339245374672012-01-16T16:38:16.487-06:002012-01-16T16:38:16.487-06:00And this is a comment on Glen Hubbard´s "conf...And this is a comment on Glen Hubbard´s "confusion":<br /> http://thefaintofheart.wordpress.com/2011/11/17/glenn-hubbard-is-consistently-wrong/João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-33952370736827288472012-01-16T16:25:58.025-06:002012-01-16T16:25:58.025-06:00And NGDP growth since the official end of the rece...And NGDP growth since the official end of the recession has averaged only 2.8%! Little more than half the growth rate along the previous path. Even if you assume the new path is lower than before, the "hole" is only getting bigger!João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com