tag:blogger.com,1999:blog-5713178645208582139.post7671343751559266146..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Devalue Away (But Keep it Coordinated)David Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5713178645208582139.post-71606048291639628592010-09-15T20:22:26.866-05:002010-09-15T20:22:26.866-05:00The Louvre Accord being, of course, the inevitable...The Louvre Accord being, of course, the inevitable result of the Fedlstein/Reagan policies of the 1980s, which were partially inspired (as it were) by the currency shiftings of the early and mid-1970s.<br /><br />The good thing is the weapon is available; the unfortunate thing is that once it's used once, it tends to be used again and again. Still, much better than the alternative.Ken Houghtonhttps://www.blogger.com/profile/01440837287933536370noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-57812256525152676092010-09-15T19:34:56.913-05:002010-09-15T19:34:56.913-05:00Good question. Another way of saying it is as foll...Good question. Another way of saying it is as follows:would the added global monetary easing provide enough benefits to offset the added costs it might create in the financial system (i.e. via the risk-taking channel)? Maybe the folks at the BIS have something on this.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-64344707090332983012010-09-15T19:03:04.461-05:002010-09-15T19:03:04.461-05:00I guess so...except that this discussion is framed...I guess so...except that this discussion is framed in the context of the old way of thinking about macroeconomics, ie in terms purely of monetary policy. I think one crucial lesson emerging from the GFC is that this is wrong - monetary policy has to be integrated with financial stability policy, you cannot separate them. That is where the NK Taylor rule dominated paradigm came spectacularly ecbnoreply@blogger.com