tag:blogger.com,1999:blog-5713178645208582139.post2546687083460215207..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The "What Would Milton Friedman Say?" Whack-A-Mole GameDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-56189564045926657052012-03-17T13:38:06.777-05:002012-03-17T13:38:06.777-05:00"
purchasing long-term government bonds as a ..."<br />purchasing long-term government bonds as a way to push the Japanese economy out of its quasi-recession <br />"<br /><br />A q-recession emanating directly from a political attempt to resurect dead home mortgages just long enough to make whole the ineffectual bankers publicly exposed as loosers? A timely revisit to the *emaculate deflation etude* could have taught our asian Debitores Caveatisnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-34670154135062805512012-03-08T17:10:12.352-06:002012-03-08T17:10:12.352-06:00David, I never really liked the concept of a natur...David, I never really liked the concept of a natural interest rate. Was monetary policy in the US too easy prior to 2008? Maybe, but I still think that is was mostly unimportant in terms of explaining the crisis.Lars Christensenhttps://www.blogger.com/profile/08409946182659964026noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54173340923048685452012-03-08T11:22:06.273-06:002012-03-08T11:22:06.273-06:00Bill and Lars,
One can construct a Taylor Rule th...Bill and Lars,<br /><br />One can construct a Taylor Rule that shows both monetary policy being too loose during the housing boom and now being too tight. The Taylor Rule, after all, does have the natural interest rate in it. One just needs to let it vary to get reasonable results.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-90318716998107924202012-03-08T10:31:24.442-06:002012-03-08T10:31:24.442-06:00And Bill, I totally agree...the craziness about th...And Bill, I totally agree...the craziness about the Taylor rule is incredible. Taylor never ever before AFTER the collapsed argued that bubbles were created if his rule was not followed. I did not hear Taylor join the crowd with Peter Schiff and Nouriel Roubini etc. prior to 2008. Disclaimer: I was quite negative myself prior to 2008 I was of the view monetary policy was too loose in the US.Lars Christensenhttps://www.blogger.com/profile/08409946182659964026noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-37924706417906305942012-03-08T09:55:41.257-06:002012-03-08T09:55:41.257-06:00David, excellent post! It is shocking how Friedman...David, excellent post! It is shocking how Friedman is being misread by so many right-wing commentators and even by prominent economists. <br /><br />I believe your reading of Milton Friedman is perfectly correct. In fact I a couple a months ago made the same argument based on the same WSJ article: http://marketmonetarist.com/2011/11/05/Lars Christensenhttps://www.blogger.com/profile/08409946182659964026noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77349038891919754662012-03-08T08:44:21.370-06:002012-03-08T08:44:21.370-06:00Hard to believe Amity Shaes is making baseless cla...Hard to believe Amity Shaes is making baseless claims with no proof, leading to unsubstantiated conclusions derived from unwarranted assumptions.<br /><br />At what point in an English literature concentration do they teach economics anyway?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-738144298499231742012-03-08T07:13:57.712-06:002012-03-08T07:13:57.712-06:00Shlaes is just following Taylor.
Obviously, he ha...Shlaes is just following Taylor.<br /><br />Obviously, he has convinced some old monetarists.<br /><br />If you think about it, they were overly persuaded that M2 velocity was sufficiently stable so that money supply rule would result in stable prices and output.<br /><br />By the way, isn't it possible that supply side policies could be used to manipulate the natural intersest rate (and heckBill Woolseyhttps://www.blogger.com/profile/06330232724290161369noreply@blogger.com