All posts for the month October, 2020

How is that NeoFisherian experiment going in Turkey?

Here’s the Financial Times: Turkey’s central bank has dented hopes for a return to economic orthodoxy, ignoring calls from many investors to raise its main interest rate and sending the lira to a new record low. The currency fell more than 2 percent immediately following the decision to keep the benchmark one-week repo rate on […]

Market Monetarism is more than NGDP Targeting

It’s true that I prefer NGDP Targeting like many other market monetarists. But I also think the Fed did a pretty good job during the Grand Moderation without NGDP Target.In fact, market monetarism is mostly about another set of ideas. The important thing here is to keep in mind that NGDP targeting is not on […]

This is not our grandfather’s recession

Scott Sumner wrote a post that the Keynesian model could not explain the recession we were in recently. Although I fully agree with Sumner, I intend to emphasize a few points. Let’s first look at this graph showing PCE and disposable income: The Keynesian models we have do not show that NGDP will drop 33% […]

Rethinking Macroeconomics

For a while, I have been trying to turn my views on macroeconomics into a complete system. This post will summarize how I approach macroeconomics from my market monetarist framework. However, keep in mind that I am only summarizing the core components.