tag:blogger.com,1999:blog-5713178645208582139.post5929664818438934991..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The National Review on Monetary PolicyDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-5555072138084787252011-04-08T11:44:43.755-05:002011-04-08T11:44:43.755-05:001) Ramesh Ponnuru is a blithe fool, as anybody who...1) Ramesh Ponnuru is a blithe fool, as anybody who has made the mistake of paying attention to him should know.<br /><br />2) This<br /><br />"there is an excess demand for safe, liquid assets that is preventing a robust recovery."<br /><br />is utterly false. There is no demand. The average American is tapped out. The house credit card is maxed out. That is what happened in 2008 Rollorynoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-15375854203129438692011-04-06T16:04:39.804-05:002011-04-06T16:04:39.804-05:00BTW, the WSJ ran an guest op-ed today advocating a...BTW, the WSJ ran an guest op-ed today advocating a return the gold standard, and crimping the fed. <br /><br />I wrote them a letter asking why they did not run the op-ed on April 1. <br /><br />Beckworth: Why don't you write a retort?Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-1515353976689851612011-04-06T14:08:20.942-05:002011-04-06T14:08:20.942-05:00David-
Good point. Actually, I think something c...David-<br /><br />Good point. Actually, I think something close to that happened in the 1990s in the USA. Nice productivity gains, nice output growth, and low inflation. <br /><br />BTW, even at one percent inflation as measured by the CPI, we might be in mild deflation. As I am sure you know better than I, it is difficult to measure product and service quality. I carry a cell phone that makes Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-73771799066134389972011-04-06T12:58:15.429-05:002011-04-06T12:58:15.429-05:00Anonymous:
Good point. Still, I hope congressiona...Anonymous:<br /><br />Good point. Still, I hope congressional leaders get the chance to hear there is more than a hard money approach to monetary policy. Thanks to Ponnuru they might.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-40063088179844871652011-04-06T12:56:30.316-05:002011-04-06T12:56:30.316-05:00Benjamin:
Note that the mild deflation would only...Benjamin:<br /><br />Note that the mild deflation would only occur when there was rapid productivity and economic growth. That is far different than what Japan went through. It is also an implication of NGDP targeting. Say the Fed targets 5% NGDP growth. And because of a productivity boom we have 6% real GDP one year. Maintaining the NGDP target would require -1% deflation.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-52927387288834300632011-04-06T12:40:10.406-05:002011-04-06T12:40:10.406-05:00"If only he could convince the Republican lea..."If only he could convince the Republican leadership to adopt the quasi-monetarist view."<br /><br /><br />First he would have to convince the Republican leadership that it's okay for the economy to be doing well in 2012 even if it makes it harder to defeat Obama. <br /><br />Good luck with that.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-81295244283585324142011-04-06T11:46:03.515-05:002011-04-06T11:46:03.515-05:00Terrific article in NRO.
I do wonder about the p...Terrific article in NRO. <br /><br />I do wonder about the prescription for "mild deflation" as some point in the future. This has not worked in Japan.<br /><br />My gut tells me that people will not buy or invest in real estate, in a deflationary environment. Or maybe other kinds of businesses as well. "Wait 'till next year," might become the investor national athem.<brBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com