tag:blogger.com,1999:blog-5713178645208582139.post1710896923209489409..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Risks from the New Fed PolicyDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-78617289721320921552009-03-25T17:46:00.000-05:002009-03-25T17:46:00.000-05:00I wish I knew a lot more ! As far as the "conundru...I wish I knew a lot more ! As far as the "conundrum", have you looked at<BR/>John Cochrane's paper, "Decomposing the yield curve" http://faculty.chicagobooth.edu/john.cochrane/research/Papers/interest_rate_revised.pdf<BR/>He address the period in question in Section 5.3 of the paper. Essentially he says its declining term premium. Long bonds became safer due to low inflation volatility. As well, Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-83653479881420291082009-03-25T16:32:00.000-05:002009-03-25T16:32:00.000-05:00ECB:Since you seem to know a lot, I have an issue ...ECB:<BR/><BR/>Since you seem to know a lot, I have an issue to run by you that has has me perplexed. There seems to be many observers who continue to cite the interest rate conundrum of 2005-2006 as evidence that the Fed has little control over long-term rates and/or view it as the result of the saving glut. While I don't completely dismiss the saving glut--it could have affected the term David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-87767972129399922892009-03-25T16:05:00.000-05:002009-03-25T16:05:00.000-05:00Right, that's the one. Sims links up nicely with T...Right, that's the one. Sims links up nicely with Taylor's article.<BR/>Ball is good for the first 12 chapters, but if you are not a fan of the New Keynesian approach to monetary analysis, you're not going to like the second half. Theories built on cashless economies without intermediation are unhelpful for understanding current events.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-43918473531885613562009-03-25T10:24:00.000-05:002009-03-25T10:24:00.000-05:00ECB: Look at the end of this post for Chris Sims'...ECB: Look at the end of this post for Chris Sims's <A HREF="http://macromarketmusings.blogspot.com/2008/12/importance-of-feds-balance-sheet.html" REL="nofollow">discussion</A> of the Fed's balance sheet. <BR/><BR/>Yes, I am impressed with Ball's new book. It looks like it could make a big splash in the market for money and banking textbooks. It will be interesting to see how the dominant David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-19218552147813893372009-03-25T08:02:00.000-05:002009-03-25T08:02:00.000-05:00A nice post that pulls together a number of themes...A nice post that pulls together a number of themes. It also reminds me of a post you did a while back about Chris Sims's concerns about the future of the Fed balance sheet but I cant find it!<BR/>And on another note: Given your concerns about the relevance of money & banking texts, what do you think of Ball's new text? At least its up-to-date!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-42677112123250262762009-03-24T16:47:00.000-05:002009-03-24T16:47:00.000-05:00Sounds like a very high tightrope act for Bernanke...Sounds like a very high tightrope act for Bernanke and Co. to have to follow... <BR/><BR/>I wonder what this recession/depression will look like with the 15% interest rates of the early 80s? What could that do to the housing market? <BR/><BR/>I grant you, as a guy with a significant mortgage I wouldnt mind seeing inflation as long as my salary goes up.... <BR/>but my parents, on a fixed income,TexanNavyhttps://www.blogger.com/profile/15473969454552606499noreply@blogger.com