Ex-ante concerns about moral hazard
Fascinating post by Stephen Williams, who is a great monetary economist. In it, he goes through speeches at the Federal Reserve from September 2007 – a few months into the burgeoning credit crisis....
View ArticleThe excel error in Rogoff-Reinhart
I see the Rogoff-Reinhart figures regarding the correlation between GDP growth and the size of the debt stock are currently under attack – due largely to an unfortunate excel error discovered reported...
View ArticleHousing fuelled consumption boom?
In the EJ: There is strong evidence that house prices and consumption are synchronised. There is, however, disagreement over the causes of this link. This study examines if there is a wealth effect of...
View ArticleQE discussion fun
Last week I was away from the internet and work – as I was trying to finish off my paper for the NZAE conference this year. So I missed this post by Cochrane (including a bunch of great comments) and...
View ArticleFair point
From this entertaining discussion of the Rethinking Macroeconomics II conference comes this gem (ht Economist’s View) 8) Can we realistically solve the “too big to fail” problem? We have to solve it....
View ArticleSumner on Borio
A quote via Scott Sumner: But debt doesn’t make workers want to work less, it makes them want to consume less. There is a difference. We need economists to look through these framing effects, and see...
View ArticleThe Economist on the GFC
The Economist magazine has started a five part series on the Global Financial Crisis, and the lessons from it. Should be a lot of fun. Part one is here. They conclude: The regulatory reforms that...
View ArticleFive year anniversary of Lehman Brothers
Sunday was the 5-year anniversary of the failure of Lehman Brothers – there was a live-streaming Twitter account, an good article by Liam Dann reminiscing, and a pointer to what he wrote about the...
View ArticleComparing recessions: Unemployment in New Zealand
Keeping in mind Shamubeel’s point that we need to be careful looking at aggregates, I thought it would be nice to update the graph from this post back in early-2009 – when people were talking about 11%...
View ArticleSome broad lessons from the GFC
I had to do a brief chat about the Global Financial Crisis, “mistakes” that were made, and the role of the international financial architecture, for a organisation I’m not naming with people I’m not...
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