Category Finance
Bond vigilante attack = bursting the bond bubble = target NGDP
The title says it all. There's not much to add. "Bond vigilante attack" is just another name for "bursting the bond bubble". And loosening monetary policy would do that.
Waiting for the bond vigilantes
Paul Krugman is right if he is talking about a small attack by the bond vigilantes. It's a good thing, because it increases Aggregate Demand, which is what the US economy needs. But too much of a good thing will be a bad thing. A large attack by the bond vigilantes would be a bad […]
Provincial Debt Update
The 2012 Federal Fiscal Reference tables are out and the information on provincial net debt is interesting especially when the growth of net debt is considered.
Liquidity-Velocity Multipliers, Menger, Money, and Financial Crises.
This is a Sunday morning [evening – I hesitated] post, about some ideas I'm playing around with, trying to get my head straight. I'm just throwing it out there, and wondering if it has enough empirical "oomph" to fly. I don't think there's anything original here. "It's all in Menger". But Menger didn't draw a […]
Trashing balance sheets and observational equivalence of fundamental and bubble money
Four years ago (and again two years ago) I argued it might be good policy for central banks to (conditionally) trash their own balance sheets. Now this idea is in the news. See Ralph Musgrave for links. The recent blogosphere debate over whether money is or is not a bubble must have sounded like angels […]
Liquidity, bubbles/ponzis/chain letters, and money
I might as well join in the fun. Along with Steve Williamson, Noah Smith, Karl Smith, Paul Krugman, David Glasner, and Steve again. [Update: and Brad DeLong and JP Koning. And David Andolfatto.] Some assets are more liquid than others (they have lower transactions costs of buying and selling). More liquid assets will have a […]
Is “Y=C+I” a PPF?
I'm thinking about the best way to teach the investment demand curve in the "classical" (flexible price and wage) macroeconomic model. I don't like the way it's normally done. This post is an experiment, where I'm trying to come up with a better way. I'm not sure if I have succeeded yet, so if you […]
Forecasting Deficits Ontario Style
One of my most piercing electoral memories is the 1993 federal election debate that featured then Prime Minister Kim Campbell, Jean Chretien, Audrey McLaughlin, Preston Manning and Lucien Bouchard. The part that always sticks in my mind is Lucien Bouchard’s persistent questioning of Campbell with respect to the size of the deficit in the 1993 […]
Is Ontario Breaking the “Golden Rule”?
Ontario’s government is now engaged in public sector restraint and reform tackling its doctors and teachers in an effort to wrestle down its 15 billion dollar deficit. Soon it will be turning its attention to universities. Indeed, work is already underway on an ambitious plan to reform the university sector which according to reports on […]
The Cambridge Capital Debate: my very short version
Warning: this is very much not my area. I don't do micro/GE theory. I was reading a bit of this stuff over 30 years ago, and then moved on to other things. If somebody asked me: "So Nick, what was all that about?", this is what I would say. Take it in the spirit of […]
Worthwhile Canadian Initiative 
Recent Comments