tag:blogger.com,1999:blog-5713178645208582139.post8346063994514238701..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: The Fed and Its Impact on the Global EconomyDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-5713178645208582139.post-58952514943311300392011-05-21T19:44:15.317-05:002011-05-21T19:44:15.317-05:00No problem Luis.No problem Luis.David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25970223019840846142011-05-21T14:44:22.082-05:002011-05-21T14:44:22.082-05:00Matt-
Whenever people blame the Fed for a bubble,...Matt-<br /><br />Whenever people blame the Fed for a bubble, it does remind me or bar patrons who sue the bartender for getting them drunk and letting them drive home. <br /><br />The Fed does not spike drinks, or give them away free. There might be a "happy hour."<br /><br />And there is a nagging policy issue: Can we stomp out every bubble before it happens without doing a japan? AndBenjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-65526938273384800992011-05-21T04:58:28.149-05:002011-05-21T04:58:28.149-05:00David, with your permission, I take three graph of...David, with your permission, I take three graph of figure 1 to my blog. Thankswww.MiguelNavascues.comhttps://www.blogger.com/profile/00880006105532291958noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-87259916808343416342011-05-21T03:51:58.828-05:002011-05-21T03:51:58.828-05:00Very good, very clear. I buy it.
Some questions:
...Very good, very clear. I buy it. <br />Some questions:<br />DO you see some pararel lines with Rajan "Fault Lines"?<br />In any case, the growing external deficit could not again be disdained by monetary policy. <br />When in 200-2005 I used to work on US economy, I never understood why the huge external deficit was not in the focus of the discussion.www.MiguelNavascues.comhttps://www.blogger.com/profile/00880006105532291958noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-56362275020834304532011-05-20T05:31:49.356-05:002011-05-20T05:31:49.356-05:00Typically, what keeps investors from 'getting ...Typically, what keeps investors from 'getting drunk on their investments' ? Interest rates and prices do. Interest rates help allocate resources over time, reflecting the tradeoff between consuming now vs later. They are a function of our time preferences and impact capital structure. Just like any price, they reflect tradeoffs and capture the knowledge and preferences of millions(matt bogardhttp://www.ageconomist.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-20195095444194393662011-05-19T12:56:16.661-05:002011-05-19T12:56:16.661-05:00Benjamin:
I agree that there were a lot of moving...Benjamin:<br /><br />I agree that there were a lot of moving parts to the boom, some of which cannot be laid at the feet of the Fed. And I am certainly not asking the Fed now to tighten up because of the potential problems its policy is causing in emerging economies. All I want is for folks to grapple with the possibility that the Fed may have had an important role in the global economic boom in David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-6997095425382368012011-05-19T12:39:43.801-05:002011-05-19T12:39:43.801-05:00Interesting argument.
But, should we blame the ba...Interesting argument.<br /><br />But, should we blame the bartender if patrons get drunk on their investments? No one is forced to buy a house, dot.com stock or commodity at high prices. <br /><br />Having enough money in the system to propel growth should be a goal of the Fed. Should not investors take responsibility for how they invest? <br /><br />Another question; If we run the Fed to never Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com