David Beckworth (‘The Wrong Debate: Helicopter Drops vs. Quantitative Easing’, EconoMonitor, December 10) leaves the impression that overt money financing is somehow the same as quantitative easing. He recommends that both approaches should involve a permanent increase in base money, and that both should be anchored to a nominal GDP level/target. Such recommendations are, no [...]
For three decades, Hong Kong has thrived economically. As the city-state ponders its political path, its economic future is at crossroads. For three decades, Hong Kong has thrived economically along with the Chinese mainland. Now its economic future is at a crossroads. According to a poll conducted by South China Morning Post, Hong Kong residents [...]
Economics(1) has many attributes of a religion: Its high priests argue about arcane minutia, offer prophecies which don’t come to pass, and taking them seriously requires a leap of faith. Any serious politician requires an economic shaman — preferably one with an exalted academic position and a talent for soundbites. These high priests speak with [...]
It's a Bird, It's a Plane, It's a...Bubble?
Animal spirits are no longer as exuberant as they once were.
Must ReadEd Dolan's Econ Blog
Environmentalists often pillory China, with its opaque city air, dirty water, and contaminated food as the leader of a race to the bottom. By spending as little as possible on pollution control, they say, it keeps production costs to a minimum and boosts exports. If Chinese producers had to bear the full external costs their [...]
On the liquidity trap: we have discovered, unfortunately at great cost, that the zero lower bound can indeed be binding, and be binding for a long time—five years at this point. We have also discovered that, even then, there is still some room for monetary policy. The bulk of the evidence is that unconventional policy can systematically affect the term premia, and thus bend the yield curve through portfolio effects. But it remains a fact that compared to conventional policy, the effects of unconventional monetary policy are very limited and uncertain.