Recently, Borio et al (2018) wrote a paper about how monetary policy is stuck between a ‘growing financial cycle’ and low rates of inflation. Although the growing financial cycles ask for an increase in the rate…
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In my previous blog about FTPL, I explained the basic idea of FTPL. In this blog I will dig a bit deeper in the relations between the government, central bank policy and inflation. I also…
Noah Smith (@noahpinion) recently wrote a blog on bloomberg about how our most cherished economic theories have been burried by the economic reality of Japan. One of the economic theories that have failed, according to Noah, is…
Jeroen Blokland recently posted something on his blog about the causes of lower productivity in advanced economies. He mentioned that the drag on productivity might have been caused by the loose monetary policy of central banks. I…