tag:blogger.com,1999:blog-5713178645208582139.post4951762451940722227..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Obama Needs His FDR MomentDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger19125tag:blogger.com,1999:blog-5713178645208582139.post-6015555179026042152012-04-23T21:17:07.061-05:002012-04-23T21:17:07.061-05:00Anonymous:
That is exactly what many observers sa...Anonymous:<br /><br />That is exactly what many observers said when FDR devalued the dollar in 1933. But it didn't happen, rather a sharp recovery took hold.<br /><br />Likewise, a NGDP level target should actually help grandma. It would jump start the economy and as a result, raise real returns. Grandmas living on fixed income would be happy.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-53927498061234601242012-04-23T12:51:46.486-05:002012-04-23T12:51:46.486-05:00This is awful.
A far better plan would be to si...This is awful. <br /><br />A far better plan would be to simply twist grandma's arm until she give you her PIN. Then you empty her bank account in the name of demand! At least people could understand what you are doing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25276913478813397572012-04-21T15:41:30.631-05:002012-04-21T15:41:30.631-05:00David,
You guys should try to find more common gr...David,<br /><br />You guys should try to find more common ground with MMR. I think you'll find many similarities with their open minded approach.NedFhttp://none.comnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49315908229774880152012-04-21T14:40:54.166-05:002012-04-21T14:40:54.166-05:00"One way to do it. Create four trillion dolla..."One way to do it. Create four trillion dollars in coinage and have the fed mark up the account of the social security trust fund. Go to congress and ask for legislation reducing the fica tax to no more than one percent of every paycheck. At least a five percent raise for workers, and five percent back for their employers."<br /><br />This makes a lot of sense, its using coinage to fundbeowulfhttps://www.blogger.com/profile/14987548132065830204noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54373571316724906302012-04-19T21:03:47.249-05:002012-04-19T21:03:47.249-05:00And I thought I was a fire-breather.
Next to Davi...And I thought I was a fire-breather.<br /><br />Next to David Beckworth, I am Tiny Tim in short pants.<br /><br />Obama is far too conservative (small c) a fellow to mint platinum coins---besides the GOP, with a misguided but self-perceived messianic mission to preserve the value of the dollar, would quash it. <br /><br />It is a honking great idea.<br /><br />But then, so is running a national Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-86926370615894041592012-04-19T19:56:14.100-05:002012-04-19T19:56:14.100-05:00This would be nice, but Obama has absolutely no in...This would be nice, but Obama has absolutely no interest in being anything like FDR. After all, FDR wasn't "bi-partisan" which makes him anathema to Obama.Ricknoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-33128474173754504182012-04-19T16:46:31.936-05:002012-04-19T16:46:31.936-05:00Beckworth for President.Beckworth for President.Saturosnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-35375242089847986262012-04-19T10:41:29.153-05:002012-04-19T10:41:29.153-05:00One way to do it. Create four trillion dollars in...One way to do it. Create four trillion dollars in coinage and have the fed mark up the account of the social security trust fund. Go to congress and ask for legislation reducing the fica tax to no more than one percent of every paycheck. At least a five percent raise for workers, and five percent back for their employers. If congress can't get it done, it faces a difficult November. GiveAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77045814984287827922012-04-19T09:29:20.688-05:002012-04-19T09:29:20.688-05:00JKH:
Yes, I was thinking that the Treasury would ...JKH:<br /><br />Yes, I was thinking that the Treasury would send checks directly to households--essentially a helicopter drop. No further deficit is needed.<br /><br />Regarding the plan's efficacy, I believe a big part of its success would come from the expectations it would create of higher nominal spending. A President promising to do a helicopter drop until the NGDP trend was hit shouldDavid Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49179063712236692752012-04-19T09:28:00.860-05:002012-04-19T09:28:00.860-05:00Dan Kervick:
Yes the devil is in the details. ...Dan Kervick: <br /><br />Yes the devil is in the details. This is why I would first go with the Fed doing a NGDP level target, though even then one could argue that Congress might get involved in such a radical change by the Fed.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-33133565828971521202012-04-19T07:43:36.737-05:002012-04-19T07:43:36.737-05:00Wait a minute. I am not an economist, but for the ...Wait a minute. I am not an economist, but for the last few years I've been reading up on how the crisis happened, and its origins go back to the Volcker chairmanship. He didn't attack stagflation through reserves, he attacked it through draconian interest rates. At one point during his chairmanship I believe the overnight funds rate reached 20%. High teens, anyway. The real target of his Procopiushttps://www.blogger.com/profile/17554355440319405363noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-10643339084862288662012-04-19T04:40:22.329-05:002012-04-19T04:40:22.329-05:00“He should signal his intentions for higher level ...“He should signal his intentions for higher level of nominal spending”<br /><br />I may have misread this at first, but does it mean a higher desired level of NGDP, without necessarily requiring a higher deficit than already assumed? I now assume that’s the case, which seems consistent with a market monetarist approach.<br /><br />Assuming that’s the case, and while it’s all highly hypothetical, JKHhttps://www.blogger.com/profile/06322177539880818556noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-38300666129978975352012-04-18T20:53:00.936-05:002012-04-18T20:53:00.936-05:00I'm all for this. Of course, you do understan...I'm all for this. Of course, you do understand that under the US system of government for the Treasury to "issue check", the spending needs to be authorized by Congress, right. Treasury can mint and cash the coin all by itself to get a big fat balance in the public Treasury. But only Congress can authorize the disbursement of funds from the Treasury.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-90288197536112772232012-04-18T16:54:46.473-05:002012-04-18T16:54:46.473-05:00Thanks Anonymous, the Volcker spelling has been fi...Thanks Anonymous, the Volcker spelling has been fixed.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-482524876397036912012-04-18T16:26:20.736-05:002012-04-18T16:26:20.736-05:00David, fyi, let's spell Volcker correctly. Mu...David, fyi, let's spell Volcker correctly. Much stronger post if you do.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-53776889825016369602012-04-18T13:59:31.826-05:002012-04-18T13:59:31.826-05:00gregory wrote:
"there is no "aggregate ...gregory wrote:<br /><br />"there is no "aggregate demand slump" if you count the demands of banks and finance institutions.<br /><br />as for obama, business as usual is all the farther he can see ... imo "<br /><br />Is that a joke? The demands by banks and finance institutions for what?Bill Woolseyhttps://www.blogger.com/profile/06330232724290161369noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-1360704101644146782012-04-18T13:40:17.712-05:002012-04-18T13:40:17.712-05:00there is no "aggregate demand slump" if ...there is no "aggregate demand slump" if you count the demands of banks and finance institutions.<br /><br />as for obama, business as usual is all the farther he can see ... imogregoryhttps://www.blogger.com/profile/14408369948377761936noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-5416853394685154122012-04-18T12:56:28.183-05:002012-04-18T12:56:28.183-05:00Evan,
NGDP level targeting by the Fed is my first...Evan,<br /><br />NGDP level targeting by the Fed is my first choice. So if Obama could push it through Congress then yes. Congress, however, has a number of hard-money advocates who would make it very difficult if not impossible to pass. Of course, what I am proposing would be seen as even more radical so it is not likely to happen either.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-41719677238977886902012-04-18T10:56:42.444-05:002012-04-18T10:56:42.444-05:00David,
Wouldn't it just be easier if the Oba...David, <br /><br />Wouldn't it just be easier if the Obama administration pushed an NGDP target through Congress? I don't know how cooperative the Republicans would be, but it strikes me as more realistic than your idea, although interesting.<br /><br />Or could it do something like that even without them -- like through a regulatory decision or executive order? (I doubt it, given the Evan Soltashttps://www.blogger.com/profile/06212305798151301158noreply@blogger.com