Nobody Really Knows How the Economy Works.
https://www.nytimes.com/2021/10/01/upshot/inflation-economy-analysis.html
Many experts are rethinking longstanding core ideas, including the importance of inflation expectations.
Demand Is Not the Economy’s Problem. Supply Is.
https://www.bloomberg.com/opinion/articles/2021-10-01/demand-is-not-the-economy-s-problem-supply-is
Policy makers and central bankers are stuck in a mindset from the last crisis and need to alter their thinking.
My thoughts on recent macro policy debates:
The debate we should be having about the Federal Reserve
https://thehill.com/opinion/finance/570895-the-debate-we-should-be-having-about-the-federal-reserve
It's time to ease up on the stimulus accelerator
https://thehill.com/opinion/finance/566130-its-time-to-ease-up-on-the-stimulus-accelerator
https://www.nytimes.com/2021/10/01/upshot/inflation-economy-analysis.html
Many experts are rethinking longstanding core ideas, including the importance of inflation expectations.
https://www.bloomberg.com/opinion/articles/2021-10-01/demand-is-not-the-economy-s-problem-supply-is
Policy makers and central bankers are stuck in a mindset from the last crisis and need to alter their thinking.
The debate we should be having about the Federal Reserve
https://thehill.com/opinion/finance/570895-the-debate-we-should-be-having-about-the-federal-reserve
It's time to ease up on the stimulus accelerator
https://thehill.com/opinion/finance/566130-its-time-to-ease-up-on-the-stimulus-accelerator
Should the Fed be less complacent about inflation
risks?
https://thehill.com/opinion/finance/554058-should-the-fed-be-less-complacent-about-inflation-risks
Have misguided policies led to recent asset bubbles and boom-bust cycles?
https://thehill.com/opinion/finance/538921-have-misguided-policies-led-to-recent-asset-bubbles-and-boom-bust-cycles
https://thehill.com/opinion/finance/554058-should-the-fed-be-less-complacent-about-inflation-risks
Have misguided policies led to recent asset bubbles and boom-bust cycles?
https://thehill.com/opinion/finance/538921-have-misguided-policies-led-to-recent-asset-bubbles-and-boom-bust-cycles
Related:
Post-Crisis Lessons for Macroeconomists
https://www.bloomberg.com/view/articles/2017-10-17/fixing-macroeconomics-will-be-really-hard
Noah Smith notes:
“If macroeconomists heed Blanchard and Summers’ advice, they will have to do harder math, and they will find better data to test their models. But their challenges won’t end there. If the economy can linger in a good or bad state for a long time, it’s almost certainly a chaotic system. Researchers have known for decades that unstable economies are very hard to work with or predict. In the past, economists have simply ignored this unsettling possibility and chosen to focus on models with only one possible long-term outcome. But if Blanchard and Summers are any indication, the Great Recession might mean that’s no longer an option.”