tag:blogger.com,1999:blog-5713178645208582139.post7000306103448050002..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Is Monetary Policy Capable of Offsetting Fiscal Austerity?David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-5713178645208582139.post-69740347339664639942013-05-07T00:23:22.192-05:002013-05-07T00:23:22.192-05:00It is particularly sad when politicians can find o...It is particularly sad when politicians can find out only after the fact that their policy had been ill-suited to the economic condition of their time. More sad still is when those politicians continue on, in denial,even as the verdict is coming in. For more analysis, pls see my essay at http://www.thewordenreport.blogspot.com/2013/04/does-austerity-work.htmlDr. Wordenhttps://www.blogger.com/profile/02867414605883311000noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-83564693808809658022013-05-01T20:53:58.311-05:002013-05-01T20:53:58.311-05:00Anonymous,
In particular if you compute the differ...Anonymous,<br />In particular if you compute the differences between the 2010 structural balance and the projected 2013 structural balance you will find the difference to be 3.9 points for the US and 3.2 points for the EA17. <br /><br />In fact the only EA17 members that are projected to increase their structural balance more than the U.S. between 2010 and 2013 are Greece (11.8), Portugal (6.1) Mark A. Sadowskihttps://www.blogger.com/profile/08259309059705236763noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-76241809141866061952013-05-01T20:30:41.481-05:002013-05-01T20:30:41.481-05:00David,
If you want to be consistent, U.S. "g...David, <br />If you want to be consistent, U.S. "government final consumption expenditure" is also available at Eurostat and the OECD. FRED has the OECD series (series USAGFCEQDSNAQ) and I believe it is identical to Eurostat's. <br /><br />It's also possible to come up with the Eurostat EA17 equivalent of "government consumption expenditures and gross investment" but Mark A. Sadowskihttps://www.blogger.com/profile/08259309059705236763noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-3797147913218012932013-05-01T11:45:32.291-05:002013-05-01T11:45:32.291-05:00Anonymous, that is fair critique. See my response ...Anonymous, that is fair critique. See my response above in the update to the post.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-84403791866015490852013-05-01T11:37:49.131-05:002013-05-01T11:37:49.131-05:00Mark, I used "government final consumption&qu...Mark, I used "government final consumption" which seems to be the only one available. For the United States I used "government consumption expenditures and gross investment".David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-21401882176292139392013-05-01T10:21:10.628-05:002013-05-01T10:21:10.628-05:00Government spending is a very incomplete measure o...Government spending is a very incomplete measure of fiscal policy stance. Making the graphs above worthless. Taxes matter too. Spain, Portugal, Greece, France, the UK and Italy have all increased taxes as well as cut spending during the crisis.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-90518630804404908572013-04-30T23:21:13.350-05:002013-04-30T23:21:13.350-05:00The Fed should have printed a lot more money.
We ...The Fed should have printed a lot more money.<br /><br />We are at 1 percent inflation now.<br /><br />The United States of Japan, here we come. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-40609664051280039372013-04-30T22:13:53.850-05:002013-04-30T22:13:53.850-05:00David,
Can you please state specifically which gov...David,<br />Can you please state specifically which government spending series you have graphed (there are so many). I have been working with similar data for virtually identical reasons and wish to make comparisons. Incidentally I sent Evan Soltas some closely related graphs in response to his recent posts.Mark A. Sadowskihttps://www.blogger.com/profile/08259309059705236763noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-78507330002509650632013-04-30T01:39:53.249-05:002013-04-30T01:39:53.249-05:00I think its worth considering how Bernanke's c...I think its worth considering how Bernanke's comments about sequestration affected the expectations channel. I blogged about it here: http://southofthe49th.blogspot.com/2013/04/expectations-monetary-policy-and.htmlsouthofthe49thhttps://www.blogger.com/profile/17810518555756763201noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-37432359483509611682013-04-29T14:07:09.810-05:002013-04-29T14:07:09.810-05:00Your approach is good. Nominal GDP would reflect a...Your approach is good. Nominal GDP would reflect a more robust economy because inflation needs to rise. A higher inflation rate would bring the Fed rate into positive territory. Yet at the moment, inflation is being suffocated by a declining effective demand. It looks too late for the solution, which is raising labor share of income and unit labor costs. Aggregate profit rates are already Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49256931513232093212013-04-29T13:04:26.837-05:002013-04-29T13:04:26.837-05:00Mr. Beckworth, what government spending data for t...Mr. Beckworth, what government spending data for the EA do you use? Its hard to believe that government spending is so low as a part of GDP? I guess for the US data looks pretty low too(?)Anonymoushttps://www.blogger.com/profile/02665089266421768740noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-11343609033965885112013-04-29T10:18:29.109-05:002013-04-29T10:18:29.109-05:00It seems less clear cut in the UK.
NGDP growth ha...It seems less clear cut in the UK.<br /><br />NGDP growth has been decelerating for the past 3 years(now 2% YoY) although the BoE was at the forefront in terms of QE.<br />Can you give us an update on your view on the UK ?<br />jeanpyhttp://jeanpy.frnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54337304116792725522013-04-29T09:24:12.206-05:002013-04-29T09:24:12.206-05:00Thanks Lee, I made the correction.Thanks Lee, I made the correction.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-49911647212061699002013-04-29T07:15:23.041-05:002013-04-29T07:15:23.041-05:00http://grammarsource.com/2007/03/20/word-confusion...http://grammarsource.com/2007/03/20/word-confusion-gleam-and-glean/Lee Kellyhttp://criticalrationalism.netnoreply@blogger.com