Is the euro crisis real or nominal?
The answer is both. But I think the nominal aspect may be greater than people realize. First let me concede that there are severe real problems in the heart of the eurozone. Here is Wolfgang...
View ArticleEven more angry bears
Now there are two. First a quick reply to Mike Kimel. Here are his first complaints: This by itself has a bunch of errors. 1. I agree that adjusting for inflation is un-necessary. That doesn’t mean...
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The man who revealed too little
Time for one more stab at QE, and then we’ll have a bit of (I hope) good natured fun with my favorite target in the blogosphere. Paul Krugman has a new piece on the problems with QE, in both Japan and...
View ArticleNow that the money supply is falling fast . . .
Where are those who warned us that rapid growth in money foretold hyperinflation? Are they now predicting deflation? From the Telegraph: The stock of money fell from $14.2 trillion to $13.9 trillion...
View ArticleAgainst models: The Good, the Bad, and the Ugly
I got to thinking about macro models while reading a recent Mark Thoma post on the debate between those who defend modern macro models, and those like Krugman and DeLong who wish to move away from...
View ArticleCongratulations to Statsguy
One of my favorite commenters (although we often disagree) is Statsguy. Tyler Cowen has just called his guest post over at Baseline Scenario a “must-read post.” Here’s Statsguy: My primary contention...
View ArticleFallacies of the left and right
I’ve been surprised how much discussion has occurred in response to my neoliberalism post. Perhaps that was because Paul Krugman responded. In any case, I’d like to briefly discuss what I regard as...
View ArticleMonetary policy: The Achilles Heel of the right
I’ve argued that monetary policy is the fatal flaw of the right. In 1929 the US had an outstandingly efficient model. Banks were conservatively managed (although branching laws meant there were far...
View ArticleGreece: Is there a third way?
Steve Hanke has an interesting Cato piece defending Estonia’s currency board. Although I recently criticized the tight money in the Baltic states; I should have also mentioned that due to their heavy...
View ArticleIs it all just a terrible mistake?
Right after I quoted Matt Yglesias in the last post, I saw Tyler Cowen weigh in with his own perspective on Yglesias, and the pro-stimulus crowd in general. I’d like to separate out several of Tyler’s...
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