Previously on MoreLiver’s:
CRISIS & RECESSION
Review of Theories of Financial Crises – NBER
In this
paper, we review three branches of theoretical literature on financial crises.
The first one deals with banking crises originating from coordination failures
among bank creditors. The second one deals with frictions in credit and
interbank markets due to problems of moral hazard and adverse selection. The
third one deals with currency crises.
'Stimulus or Stymied?: The Macroeconomics of
Recessions' – Economist’s
View
Are there "Peso Problem" recessions? – Worthwhile
The Post-Crisis Crises – Project
Syndicate
Joseph E.
Stiglitz: In the shadow of the euro crisis and America’s fiscal cliff, it is easy to
ignore the global economy’s long-term problems. But, while we focus on
immediate concerns, they continue to fester, and we overlook them at our peril.
DISAGREEMENT & BAD REPUTATION
Finding economists’
common ground – Opinion
/ Reuters
Concerned that laymen have come to see all economic
proposals as being equally valid, the University of Chicago's business school
has led an effort to figure out what economists agree on, where they diverge
and how certain they are about their views.
Besides Gold, Economists Don't Agree On Much – Businessweek
Is economics divided into warring ideological
camps? – noahpinion
Why do people think economists are charlatans? – noahpinion
Room with a view – The
Economist
If economists agree on something, the public will
almost certainly think differently
Economists Use Shoddy Data – Slate
All too
often, economists’ and policymakers’ theories are based on terrible statistics.
MONETARY POLICY
Inflation versus Price-Level Targeting in
Practice – Macroblog
/ FED
Did inflation
targeting make inflation stickier? – Worthwhile
What should a central
bank do when producer and consumer prices diverge? – Worthwhile
On the transient necessity of central bank
independence – alphaville
/ FT
Long to reign over us – Buttonwood
/ The Economist
Stephen King of HSBC has an interesting piece in
today's FT on how central banking is becoming politicised, suggesting that the
era of independent central banking is coming to an end. There is a contrasting
blog from Gavyn Davies also on the website
The negative rate
bluff – alphaville
/ FT
Negative
rates, as we’ve discussed before, are a funny thing. On the one hand they can
send an immensely powerful message. On the other hand they have the power to
seriously and dangerously disrupt core economic mechanisms
Michael Woodford Continues to Do God’s Work – EconoMonitor
The inflation dragon is just around the corner – mainly
macro
FISCAL POLICY
Why the multiplier doesn't matter – noahpinion
Avoiding the B word – mainly macro
Most people sense that when a public figure avoids
answering a question, this is because they have something to hide. So in doing
so, the effect is both to suggest that the policy will indeed require more
borrowing, and that this is a problem, which is why the interviewee does not
want to talk about it.
Consider the book
value – Free
exchange / The Economist
The ratio of a country’s public debt to its annual
income is an undeservedly popular indicator. Presumably, we care about this
ratio because we want to determine whether today’s policies burden future
generations. But the government’s debt is just a collection of
income-generating assets owned and serviced by people in the private
sector—often the same people.
OTHER
When economic
optimism will finally be vindicated – Opinion
/ Reuters
Events in 2013 are starting to look good. Short-term
cyclical forces are turning positive; long-term trends in globalization and
technology are regaining momentum; and economic policy revolutions are becoming
entrenched around the world.
Global house prices – The
Economist
Our latest round-up shows that many housing markets
are still in the dumps
Economic History Roundup – BB
The Natural
Experimenter – MIT
Technology Review
MIT economist Josh Angrist’s meticulous methods have
influenced scholars for two decades. Now he’s zeroing in on what makes some
schools better than others.
In New Paper, Professor Thoma Overlooks The
Contribution of Financial Bloggers – Bonddad
Nine Facts about Top Journals in Economics – NBER
How has
publishing in top economics journals changed since 1970?