Monetary Policy Round Up
So from time to time I go round my reading list, just to pull out the best things on the Web. Its been an exciting time for Monetary Policy, as BOJ has crushed all believers in Keynesian orthodoxy.
This month Britmouse takes the prize for best post. He has been my favourite blogger on UK economics for a while. He has nailed Dr Weale, member of the BoE’s policy committee, on a cross of his own hypocrisy. Apparently any statistic will do, as long as the answer is higher rates. Since pretty much all of his posts this month have been awesome, I won’t bother listing them all, just go and take a look!
In other news, Japan has successfully exited its `liquidity trap’. After 15 years of pain and not really trying, it took….three months to produce 2% inflation and the strongest RGDP growth Japan has seen for twenty years.
Scott Sumner has continued to bash zombies. In this case it was another “Money is not easy” rant. Everyone should read Scott Sumner. He has the helpful attribute of being right about monetary economics.
The Sumner Critique has even made it into UK politics, in which Osborne gave a really quite good summary.
Lars Christensen has put together a nice graphical post on the empirical evidence for Market Monetarism in the US.
In the meantime, the Eurozone is the same sad story, unemployment rising, NGDP stagnant or falling. ECB doing nothing.