tag:blogger.com,1999:blog-5713178645208582139.post7726621659685873883..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Pick Your PoisonDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5713178645208582139.post-25262372116650295402009-11-05T15:00:35.422-06:002009-11-05T15:00:35.422-06:00Anon says: "The Fed needs new tools" Goo...Anon says: "The Fed needs new tools" Good grief! How many new tools do they need? We have a veritable alphabet soup of new lending programs and guarantees, undreamed of in the philosophy of the pre-crisis Fed. Indeed, one should I think realize that over the last decade, monetary policy making morphed into a tripartite structure of the FRB, FHLMC and FNMA. It seems pretty clear that theECBnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-17867079492627770862009-11-05T13:37:40.108-06:002009-11-05T13:37:40.108-06:00This problem seems another instance of the problem...This problem seems another instance of the problem the Fed has faced in the past couple of cycles, and seems doomed to face as long as our financial arrangements are what they are. The Fed can only address one set of circumstances with rate policy. Circumstances in the domestic real economy are likely to require a different rate stance than circumstances in asset markets. In the past, the Fed Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-13222811648612297282009-11-05T10:13:48.441-06:002009-11-05T10:13:48.441-06:00Josh, along the same lines the one critique I had ...Josh, along the same lines the one critique I had of the Roubini article was that it was short on evidence. However, that was probably more the result of article space constraints since a quick look at the trend this year in commodityand stock prices year show growth. The tough question is whether the growth is justified by fundamentals or not.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-14714224201796817382009-11-05T09:27:00.540-06:002009-11-05T09:27:00.540-06:00"global deflation or more asset bubbles from ..."global deflation or more asset bubbles from the Fed" ? Hayek evocatively called this catching a "tiger by the tail". His solution was radical monetary reform. It may yet come to that?ECBnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-70516666923180408702009-11-04T12:36:29.247-06:002009-11-04T12:36:29.247-06:00Roubini writes, "Risky asset prices have rise...Roubini writes, "Risky asset prices have risen too much, too soon and too fast compared with macroeconomic fundamentals..."<br /><br />Have they? I am not sure. The DJIA, for example, fell from 14,000. Thus, while they have appreciated quickly in recent months, they are still down almost 30%.<br /><br />And if you believe Sumner, monetary policy cannot be to blame.Joshhttp://www.everydayecon.comnoreply@blogger.com