Interesting. Both a Fed economist and Stephen Williamson (the author of one of my undergrad macro books) have been saying that persistently low interest rates “cause” deflation in the long run (ht Economist’s view) [Lots of others, WCI *, Money blog, Angry Bear, Paul Krugman, Money Illusion]. This seems a little counter-intuitive, but this doesn’t …
Category Archive: Macroeconomics
Permanent link to this article: http://www.tvhe.co.nz/2010/08/26/a-fishy-conclusion-from-a-fisher-relation/
Aug 17 2010
The New Keynesian Framework and employment persistence
Over at Econlog, Arnold Kling stated that “persistence” in employment implied that the New Keynesian story was off (ht Marginal Revolution) This sounded a bit funny to me – New Keynesianism is a framework for models, one where I had seen the persistence in unemployment, and employment (which is a well known stylized fact) before. …
Permanent link to this article: http://www.tvhe.co.nz/2010/08/17/the-new-keynesian-framework-and-employment-persistence/
Aug 11 2010
Housing and “production”
So, a while back a post on housing and production got criticised, but I didn’t notice. I shall respond now, as I need something to post on. (I would also note that there are 1 million brilliant comments in the initial post – good stuff guys.) In a strict sense building a house doesn’t increase …
Permanent link to this article: http://www.tvhe.co.nz/2010/08/11/housing-and-production/
Aug 10 2010
A note on GDP
Anti-Dismal points out the fact that Colin James seems to have run into a little confusion around the GDP statistics. Now, I can understand this confusion AND I agree that we need to think more sensibly about what income is before we run around making comparisons. In this sense, all I want to point out …
Permanent link to this article: http://www.tvhe.co.nz/2010/08/10/a-note-on-gdp/
Aug 09 2010
How many economists see government
I have seen economists termed “growth fatalists” for the fact that we don’t believe that there is much government can do to change underlying economic fortunes. Greg Mankiw posted a quote that summed up the position well: Politicians are in charge of the modern economy in much the same way as a sailor is in …
Permanent link to this article: http://www.tvhe.co.nz/2010/08/09/how-many-economists-see-government/
Aug 05 2010
More defence
Ok, so there were a couple of comments in the previous post that I think I need to discuss in order to explain why macroforecasters have value.
Permanent link to this article: http://www.tvhe.co.nz/2010/08/05/more-defence/
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