43.45 Progressives need to become neo-Liberals. :) Low deficits (with lower deadweight loss taxes), high skilled immigration, freer trade (freer enough with everyone but China to offset a modest pull-back from China) and a tax on net emissions of CO2 and trade taxes tied to the NCO2 tax to get others to go along, untying health insurance from employment.
23: 53 Summers was wrong in what he said about inflation in early 2021 because he was talking as if were WERE in a FTI world and did not say a peep about the Fed. [Reading between the lines he was worried that the relief checks (nee "stimulus") were the wrong use of limited deficit space and I think he was right.]
OK, continuing with liveblogging 13:48 :) we will not be "one supply shock away from un-anchoring if the Fed could carefully explain that the LR PL target is consistent with negative supply shocks cause above average inflation sus as negative demand shocks (20008, 20020) can result in below target inflation. The Fed should not have just predicted that inflation in 2021 was temporary but explained that it would make sure that it WAS temporary. As for what to do to demonstrate that, well that where several more TIPs would have been useful.
Oh, and let me put in a plea for influential podcasters like yourselves to bang harder on the drum for the Treasury to create more intermediate tenor TIPS or even better more TIPS and several intermediate tenor NGDP futures (even if the Fed does not use intervention in the GDP futures market as an instrument). Is there any theoretical or practical argument against that?
The ZLB is not so bad becasue the rate of LT securities is not zero the Fed could return to QE and announcing that it will continue qet increase the QE as necessary until it gets inflation back to 2%. Less announce of future values of instrument setting and more announcement of WIT targets
43.45 Progressives need to become neo-Liberals. :) Low deficits (with lower deadweight loss taxes), high skilled immigration, freer trade (freer enough with everyone but China to offset a modest pull-back from China) and a tax on net emissions of CO2 and trade taxes tied to the NCO2 tax to get others to go along, untying health insurance from employment.
51:00 The Romans razed Corinth!
23: 53 Summers was wrong in what he said about inflation in early 2021 because he was talking as if were WERE in a FTI world and did not say a peep about the Fed. [Reading between the lines he was worried that the relief checks (nee "stimulus") were the wrong use of limited deficit space and I think he was right.]
OK, continuing with liveblogging 13:48 :) we will not be "one supply shock away from un-anchoring if the Fed could carefully explain that the LR PL target is consistent with negative supply shocks cause above average inflation sus as negative demand shocks (20008, 20020) can result in below target inflation. The Fed should not have just predicted that inflation in 2021 was temporary but explained that it would make sure that it WAS temporary. As for what to do to demonstrate that, well that where several more TIPs would have been useful.
Oh, and let me put in a plea for influential podcasters like yourselves to bang harder on the drum for the Treasury to create more intermediate tenor TIPS or even better more TIPS and several intermediate tenor NGDP futures (even if the Fed does not use intervention in the GDP futures market as an instrument). Is there any theoretical or practical argument against that?
The ZLB is not so bad becasue the rate of LT securities is not zero the Fed could return to QE and announcing that it will continue qet increase the QE as necessary until it gets inflation back to 2%. Less announce of future values of instrument setting and more announcement of WIT targets