The trend is your friend (until it ends)
My previous post advertising Jim Bullard's recent speech seems to have generated a lot of discussion; see Mark Thoma, Scott Sumner, David Beckworth, Tyler Cowen, Noah Smith and, yes, even Princeton Charming himself. Most commentators are rather negative on Bullard's view that a permanent (persistent) negative wealth shock should be associated with a permanent (persistent) decline in the level of real GDP, leaving it's long-run growth rate largely...
no plus ones
- I don't often agree with David Andolfatto. Here, however, he has quite a bit of useful analysis about economic cycles and appropriate monetary & fiscal policy responses. Reading the blogs of the top of the macroeconomic food chain makes me wish sometimes that more of our public policy was written by technocrats. Not that they're not sometimes wrong, or that they don't occasionally end up stuck in their ivory tower worlds, but their arguments are reasoned and built upon analysis of the data. That's not a feeling that I often get from our politicians.Feb 21, 2012
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