tag:blogger.com,1999:blog-5908830827135060852.post5881843957133548668..comments2024-03-29T02:54:56.523-04:00Comments on Bond Economics: No, The Fed Is Keeping Rates LowBrian Romanchukhttp://www.blogger.com/profile/02699198289421951151noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5908830827135060852.post-59648697549231090182015-04-01T06:52:12.760-04:002015-04-01T06:52:12.760-04:00You may wish to take a look at Bernanke/Blinder &q...You may wish to take a look at Bernanke/Blinder "Federal Funds rate and the channels of monetary policy", which argues that monetary policy works through the creation and destruction of credit rather than the destruction and creation of money, as per the conventional story.circuithttps://www.blogger.com/profile/08565443970730261572noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-51861558011084726382015-04-01T06:24:17.179-04:002015-04-01T06:24:17.179-04:00Thanks. The post I linked to was fairly general, a...Thanks. The post I linked to was fairly general, and he was following textbook formulations. As you pointed out, saying that higher deficits raises interest rates "all else equal" does not say very much. Even with my phobia about interest rates and supply, I could probably agree with that formulation. I would need more concrete examples to be able to dig deeper. (I did not get a chance to read his follow up on secular stagnation.)Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-32207918234278267992015-04-01T03:21:40.815-04:002015-04-01T03:21:40.815-04:00There are some, but ultimately they are curve fitt...There are some, but ultimately they are curve fitters at best. The whole of their approach seems to me to be similar to the 'mechanical investing' approach that briefly showed up around the millennium. <br /><br />The difference is that the mech investors all went bust when the economy turned sour and that eliminated at least some of the daft ideas from the space. That never seems to happen with economic models since they can always come up with a series of excuses as to why they are never right. <br /><br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-5908830827135060852.post-81093211676312141702015-03-31T21:40:45.398-04:002015-03-31T21:40:45.398-04:00Nice post. Interestingly, Bernanke was viewed as s...Nice post. Interestingly, Bernanke was viewed as somewhat unorthodox because of his focus on the role of credit and banks. It may be interesting to also point out some similarities between him and the heterodox views. circuithttps://www.blogger.com/profile/08565443970730261572noreply@blogger.com