This post from appears to have been before its time. But of corse there is more coming both from old posts and new.
I finally read the recent lecture given by Christina Romer (dated 10/23/13). There’s a lot in it to like. She advocates that Fed officials eject themselves from their ivory towers and spend their summers in a sort of community service function rather than hobnobbing amongst themselves, falling victim to group-think. She also hits the spot with monetary regime change to NGDPLT and monetary offset.
But nothing and no one is 100%. In much the same way many of the world’s central bankers are peevishly entrenched in fighting 1970s-style inflation, she hangs on to the idea of a non-zero fiscal multiplier despite the experience of our Japanese friends for it not being the case if the central bank is targeting inflation or NGDP. How odd it is, then, to suggest both.
But even more importantly, in her lecture, she provides a more rounded graph of the Fed’s assets from 2007-2013. It’s…
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