Economics
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Recommended economics writing
Weekend link exchange
Feb 28th 2011, 0:41 by R.A. | WASHINGTON
TODAY'S recommended economics writing:
• The debate that's muting the Fed's response (New York Times)
• The things we teach that aren't true (Scott Sumner)
• Why New Keynesian macroeconomists are against labour unions (Worthwhile Canadian Initiative)
• On the stimulus package (Econbrowser)
• Do mayors matter? (New Republic)
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In this blog, our correspondents consider the fluctuations in the world economy and the policies intended to produce more booms than busts.
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Most commented
- Charlemagne: No time for doubters
- Banyan: Taiwan's commonsense consensus
- Charlemagne: The union within the union
- China's pre-emptive crackdown: The people doth not protest
- Precautions in Xinjiang: Catching a whiff of jasmine in Kashgar
- Qaddafi and his ilk: Blood and oil
- America's air-tanker order: Home-team advantage pays off for Boeing
- Turkey's election: A Muslim democracy in action
- Venezuela's economy: Oil leak
- Language and opinion: Framing climate change
Over the past five days
Most recommended
- Qaddafi and his ilk: Blood and oil
- KAL's cartoon
- China's pre-emptive crackdown: The people doth not protest
- Banyan: Taiwan's commonsense consensus
- Energy prices: Tax away vulnerability
- Taiwan’s contentious past: The KMT's original sin
- A special report on feeding the world: The 9 billion-people question
- The Arab uprisings: Endgame in Tripoli
- Labour law in America: Showdown in Madison
- Wisconsin public unions: Don't join the government to get rich
Over the past seven days
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Loved the do mayors matter one! I also enjoyed this post on why expert predictions fail and this one on Why performance won't get you promoted
Arthur Burns did as Nixon told him to do. Stepping on the monetary accelerator while dropping gold and imposing wage and price controls - doesn't that take care of the inflation in the first half of the '70s ?
Bampbs, exactly!
"Empirical analysis shows that the main determinants of inflation are past inflation and unemployment..." from The debate that's muting the Fed's response.
This belongs under Sumner's article, "The things we teach that aren't true." The empirical evidence is overwhelming that increases in the money supply cause price inflation.
Sumner: "In contrast, in late 2008 monetary policy was so tight that we ended up with a disinflationary recession in 2009."
Keep in mind that Sumner does not believe that monetary policy faces any lags before it is effective, even though the empirical evidence that the lags are up to 4 years is overwhelming. And Sumner believes that tight monetary policy and only tight monetary policy caused depressions. I guess if the Feds never raised interest rates we would never have a depression again. I doubt that, though.