tag:blogger.com,1999:blog-5713178645208582139.post7060351690375685390..comments2024-03-17T03:26:42.785-05:00Comments on Macro Musings Blog: Fiscal Austerity is Happening NowDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-5713178645208582139.post-5321742781520714922013-02-20T09:28:18.526-06:002013-02-20T09:28:18.526-06:00HI it is a nice post my friend.
And I would like ...HI it is a nice post my friend.<br /><br />And I would like to invite you to add your grate blog posts to http://www.myshouter.com a visual social bookmarking platform ,and let more corud to find your grate posts.<br />Thank You Very much.I wish for your success !! myshouter.comhttp://www.myshouter.comnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-26536857447522132972013-02-18T22:37:38.890-06:002013-02-18T22:37:38.890-06:00"While the Fed's success here should be r..."While the Fed's success here should be recognized, it is also apparent that the Fed has failed to restore NGDP to its pre-crisis trend. This failure to provide "catch-up" nominal spending growth is big black eye for the Fed and is why a NGDP level target is way overdue for the Fed."<br /><br />The status quo of non-catch-up stable AD growth, and "catch up" AD Geoffnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-29973725079900718642013-02-12T16:33:35.870-06:002013-02-12T16:33:35.870-06:00The answer is that there was a productivity boom o...The answer is that there was a productivity boom on the early-to-mid 2000s that needed interest rates to rise (and inflation to fall) for monetary policy to remain neutral. That was not the case in the 1970s; productivity was actually falling. There is a chapter in my book on this point. Below are some links that speak to the issue as well:<br /><br />1.) http://macromarketmusings.blogspot.com/David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-54157458437929658012013-02-12T10:14:48.363-06:002013-02-12T10:14:48.363-06:00Prof. Beckworth,
Greetings! This is TravisV from ...Prof. Beckworth,<br /><br />Greetings! This is TravisV from Scott Sumner's blog.<br /><br />I’ve heard you argue in the past that rapid NGDP growth above 5% in 2005 and 2006 was a major contributor to the housing bubble.<br /><br />If that’s true, then……why didn’t we have any similar crazy asset bubbles during the 1970′s (when NGDP grew much more rapidly)?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-31035514839765145272013-02-12T01:11:12.282-06:002013-02-12T01:11:12.282-06:00Print more money, and keep printing more money unt...Print more money, and keep printing more money until you see some real zip in RGDP growth.<br /><br />Then print a lot more money and see what happens. Maybe then, think about tightening up a bit.<br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-57138114509057544762013-02-11T10:41:57.800-06:002013-02-11T10:41:57.800-06:00David -
Yes, your graphs all show relative auster...David -<br /><br />Yes, your graphs all show relative austerity. Except for total government expenditure/GDP - yes falling rapidly, but still higher than any pre-2007 nuumber. And relative is relative. I still think you are considering austerity in absolutist terms.<br /><br />We now have the slowest growth in real personal consumption expenditures, % change YoY, of any non-recessionary period Jazzbumpahttps://www.blogger.com/profile/07337490817307473659noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-9929104352795899862013-02-11T09:12:13.233-06:002013-02-11T09:12:13.233-06:00I think the author's point is a relative decli...I think the author's point is a relative decline, though the first figure suggests there has been mild,absolute dollar decline too. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-31924251638867791382013-02-11T09:01:55.178-06:002013-02-11T09:01:55.178-06:00Seems to be a selective use of timelines. In 2007...Seems to be a selective use of timelines. In 2007 sending as a % of GDP was under 20%. How is raising spending in absolute terms and over 20% as a percent of GDP austerity?William Occamhttps://www.blogger.com/profile/11346411071294444362noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-89370970520702419392013-02-11T07:03:48.942-06:002013-02-11T07:03:48.942-06:00You get "stable aggregate demand" by loo...You get "stable aggregate demand" by looking at more than 1 quarter of data. It was, in fact, fiscal policy that caused the particular weakness reported in Q4, but that was fiscal policy of an idiosyncratic kind, as practiced by Pentagon budget guys. Over the entire post-recession period, though, stable aggregate demand growth is more or less what we have. It just happens to be growth Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-57947337650441954862013-02-11T06:32:34.763-06:002013-02-11T06:32:34.763-06:00Didn't the government just report a quarter of...Didn't the government just report a quarter of negative growth? I understand that that number is expected to be revised up a bit, but it will still turn out to be the worst quarter since 2009. So how do we get "stable aggregate demand" from that?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-77476530764769467252013-02-10T19:06:26.469-06:002013-02-10T19:06:26.469-06:00David
And at another point in time, despite rising...David<br />And at another point in time, despite rising interest rates AND fiscal consolidation, rgdp growth kept humming along!Just a reminder that MP is not about interest rate.<br />http://thefaintofheart.wordpress.com/2013/02/08/what-if-the-liquidity-trap-is-a-myth/<br />João Marcushttps://www.blogger.com/profile/13658264244033012660noreply@blogger.com