"Paul Krugman is Right!"

Wow. Another Paul Krugman post is probably overkill, but I just noticed this paper by Anna Schwartz and Edward Nelson, "The Impact of Milton Friedman on Modern Monetary Economics: Setting the Record Straight on Paul Krugman’s “Who Was Milton Friedman?”" cites this blog in the list of references:...more>>

Once economic, one objective monetary policy.

Has the conduct of monetary policy become the routine application of a set of core principles, much like the science of treating a dental cavity? The answer is: “not quite”, according to Stefan Gerlach in his guest lecture at the Bank of Mauritius yesterday. But, he adds, the overriding objective of monetary policy should be the fight against inflation. What do economists agree upon and what do they disagree upon as far as monetary policy is concerned?...more>>

Financial perspective on exchange rates

Foreign exchange is used for cross-border trade in goods and assets, so two weighted exchange rates affect the international adjustment process: the financially-weighted exchange rate index operates via the valuation channel, and trade-weighted index via net exports. The importance of the valuation channel is secularly increasing, in line with the rapid growth in the gross levels of foreign assets and liabilities....more>>

Money supply - A question about credit

I have received several questions recently about my statement "The problem with using M2 or M3 as a measure of money is that both include credit transactions." (See Is the Fed Deflating? for the source of the question)...more>>

Rule versus Disrection in Monetary Policy

I had the privilege of attending a conference in St. Louis this week on Monetary Policy under Uncertainty at which I presented a paper on the response of interest rates to changes in the fed funds target. One of the interesting themes that came up in some of the other papers concerned whether the public's interests are best served when monetary policy follows mechanical rules as opposed to responding to events in a discretionary way. Here I report on some of the discussion of this issue from the conference...more>>

The Nobel prize in economics 2007

The Nobel Prize in Economics goes to Leonid Hurwicz, Eric Maskin, and Roger Myerson...more>>
Why You Should Care About the 2007 Economic Nobel more>> more>>

What is Mechanism Design?

And here>>

Here more>>>

Fiscal Policy and Interest Rates in Australia

Economics and...: Core Inflation and Price Stability

Economics and...: Core Inflation and Price Stability

Calculating Inflation: Oil and Food or Guns and Funerals?

Richard Fisher, president of the Federal Reserve Bank of Dallas, jumped into the debate about excluding food and energy from inflation calculations by discussing in a speech today his bank’s alternative measure for price increases...more>>

Economics and...: What is the core for?

Economics and...: What is the core for?

and more here>>