I feel I ought to know the answer to this question. But I don't. Suppose that demand this period Y(t) depends on the interest rate this period r(t), and on the expected interest rate next period E[r(t+1)], and on a vector of other stuff X(t). Y(t) = D(r(t), E[r(t+1)], X(t))  where D1 < 0, D2 […]

[This is based on an informal talk I gave to Carleton students. There were first year students, and upper year undergraduates, and graduate students, and faculty, in the audience, which made it a little tricky.] Somewhere in Canada there is a person whose height is exactly equal (or almost exactly equal) to the average height […]

Tony Yates is arguing with Willem Buiter about helicopter money. Willem says that helicopter money increases aggregate demand even in a liquidity trap, because helicopter money increases net wealth, because money is irredeemable. Tony says that if money is irredeemable, the existence of an equilibrium in which intrinsically worthless money has positive value becomes problematic. […]