I earlier wrote a follow up to my semi-swansong that I thought better about. I didn’t really mean it and so I took it down.

One thing that really bugs me, though, are the comments about macro being hard, so and so was just ignorant, etc… among the tidbits of elements of synthesis that used to be accepted as sound theory. After all, those tidbits are things that MM is generally based upon. Low interest rates don’t mean easy money. Wages are sticky. Prices are sticky. Money is a hot potato. Negative supply shocks tighten policy. Wicksellian equilibrium matters. The demand for money matters. Low productivity and rising wages spells tight money in IT.

Maybe the people saying this should go sell it to Marcus, or go argue with Britmouse about when to expect tight money in an IT regime. Or maybe I should have been the Chairman of the Fed because it took a real whiz kid to make the Great Recession. I simply am not smart enough or well enough read to have made that kind of disaster.

-D-

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