tag:blogger.com,1999:blog-5713178645208582139.post9038328830660701040..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: This Does Not Look GoodDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5713178645208582139.post-86347773475168708632010-06-21T15:46:21.302-05:002010-06-21T15:46:21.302-05:00You may be interested to know that I am currently ...You may be interested to know that I am currently talking to InTrade about getting NGDP prediction markets set up. More information is here: http://goodmorningeconomics.wordpress.com/2010/06/06/intrade-ngdp-prediction-markets/ . I think the primary difficulty will be writing an automated market maker for continuous markets, as most market makers are focused on binary markets.jsalvatihttps://www.blogger.com/profile/16509764680257537430noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-12618575998661807952010-06-20T16:16:32.434-05:002010-06-20T16:16:32.434-05:00Low inflation expectations will keep nominal inter...Low inflation expectations will keep nominal interest rates low which should make MBS more profitable. The Fed is obviously eager to prop up the value of MBS and maybe they are more concerned about the value of MBS than they are the economy.Richard A.noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-6663248983785742132010-06-19T16:55:41.330-05:002010-06-19T16:55:41.330-05:00David,
The decoupling of the gold price with 5-yr...David,<br /><br />The decoupling of the gold price with 5-yr TIPS inflation expectations is interesting. <br /><br />There is at least a possibility that, as inflation expectations fall, market expectations of a more aggressive policy (to combat deflation) rise. <br /><br />Therefore, each piece of negative news relating to nominal spending would be accompanied by a higher gold price.<br /><br /David Pearsonnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-68986241264413932072010-06-18T22:40:15.382-05:002010-06-18T22:40:15.382-05:00It is hardly surprising that expectations of aggre...It is hardly surprising that expectations of aggregate demand are falling given all the talk of fiscal contraction across the globe. Couldn't we stem this, in the US at least, by increasing grants to the states so they do not have to lay off public sector workers, thus preventing a multiplier effect like I'm sure you teach your students ? There is no resource constraint here to prevent ecbnoreply@blogger.com