I have to admit that I usually dislike Vox. The twitter parody account Vaux News gets it kinda right in my opinion—they manage to turn anything into a centre-left talking point—and from the very beginning traded on their supposedly neutral image to write unbelievably loaded “explainer” articles in many areas. They have also written complete nonsense. But they […]
Scott Sumner’s Adam Smith Lecture, delivered last week, is now online. For my money it’s the best outline of his view of the Great Recession and the correct role of monetary policy that I have yet seen. Scott’s presentation can be downloaded here, and Scott wrote about his trip for TheMoneyIllusion here.
The Federal Reserve Bank of Richmond alerted me to a newish paper from one of my favourite economists, Robert Hetzel, entitled “The Monetarist-Keynesian Debate and the Phillips Curve: Lessons from the Great Inflation”—needless to say it’s highly interesting and informative. One bit in particular prompted me to write this screed on neutrality in central banking and monetary […]
Market monetarism, as propagated most prominently by Scott Sumner’s (excellent) blog The Money Illusion, argues that recessions come about due to a collapse in demand. This is a problem because prices cannot adjust downwards quickly. Instead of a costly adjustment period we can simply boost demand by announcing a target and credibly committing to do […]
A storm has erupted over the past few days in a lot of the economics blogosphere, over an article by Mike Konzcal, backed by Paul Krugman, which claimed that current economic developments were evidence that monetary policy wasn’t all-powerful and boosting demand sometimes required fiscal intervention. The claim faced convincing push-back from Scott Sumner, Matt […]