Attention Economy


Friday, August 31, 2012

US Monetary Stimulus Debate Continues


WSJ has an interesting piece on Prof. Woodford’s influence on US monetary policymaking. Doctoral students specializing in macroeconomics will be familiar with his 2003 tome – “Interest and Prices: Foundations of a Theory of Monetary Policy”


Meanwhile, Gerald P. O'Driscoll JR. argues that further monetary stimulus (QE 3) will be largely futile:
“The trouble with all forms of temporary spending is that they have no permanent effects. They delay needed adjustments in the economy.”

Update:

Ben Bernanke's Jackson Hole speech
http://www.federalreserve.gov/newsevents/speech/bernanke20120831a.pdf


Further Updates:

Two prominent economists provide their viewpoints on timely monetary policy issues -
Martin Feldstein on the Fed and Future Inflation
John Cochrane on the Fed’s Expanding Role