from Anatole Kaletsky:

Yellen looks toward a Keynesian approach

By Anatole Kaletsky
February 13, 2014

This has been a banner week for the world economy, inspired largely by events in the United States.

from Nicholas Wapshott:

Hooray for inflation

By Nicholas Wapshott
November 13, 2013

There have been some extraordinary headlines in recent days. Here’s the Economist: “The perils of falling inflation.” Here’s the Financial Times: “The eurozone needs to get inflation up again.”

from Nicholas Wapshott:

Not in the spirit of Hayek

By Nicholas Wapshott
May 14, 2013

It has been a bad couple of weeks for conservative social scientists. First a doctoral student ran the numbers on the study by Harvard’s Carmen Reinhart and Kenneth Rogoff that underpins austerity and deep public spending cuts as a cure for the Great Recession and found it full of errors. Then a policy analyst, Jason Richwine, who angered Senate Republicans trying to pass immigration reform with a one-sided estimate of the cost of making undocumented workers citizens, was obliged to clear his desk at the Heritage Foundation when it became known his Harvard dissertation suggested Hispanics had lower intelligence than “the white native population.”

from Nicholas Wapshott:

Central bankers have abandoned Milton Friedman

By Nicholas Wapshott
December 17, 2012

It is a cruel irony of fate that 2012, the year that celebrates the centennial of Milton Friedman’s birth, is the year that marks the end of his preeminence as an influence over economic policy. Since the emergence in the early 1970s of stagflation – a corrosive combination of lack of growth matched by inflation in double figures – Friedman’s dictums on the causes and cures of rising prices have been the mood music behind management of many leading economies. Since the Great Recession took hold, however, the priorities of government economists have evolved, and once more growth and employment are emerging as the prime goals of public policy.

from The Great Debate:

The late conversion of a famous monetarist

By Nicholas Wapshott
June 27, 2012

The death of Anna Schwartz has been marked with reverential obituaries. Her contribution to economics was making sense of historical facts to offer a guide to what should be done today. Posterity will know her as the co-author, with Milton Friedman, of Monetary History of the United States, 1867–1960, which revolutionized our understanding of the Great Depression. The pair concluded that, contrary to conventional wisdom, the slump was caused by the Federal Reserve not pumping enough money into the economy.

from Breakingviews:

Dollars everywhere – so where’s the inflation?

March 16, 2012

By Martin Hutchinson and Christopher Swann
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Money supply is rising fast, so where is the inflation? U.S. consumer prices rose 0.4 percent in February, but that was mostly gasoline. Year-on-year, inflation is above the Fed’s 2 percent target but not by much. Yet money supply is going through the roof. Either inflation is on the way, or Milton Friedman should lose his Nobel prize.

from MacroScope:

Channeling Milton Friedman

December 30, 2011

Ask not what your monetary policy can do for you, but what you can do for your monetary policy. That’s the jist of a 1968 paper by Milton Friedman, the poster-child for monetarist economics, entitled “The Role of Monetary Policy,” whose key questions remain hotly debated more than four decades on. Friedman’s answer is simple (some might argue too simple), and all too familiar to those who read the speeches of present-day Federal Reserve hawks – focus on the only thing monetary policy can truly control, which in Frideman’s view is price stability.

from The Great Debate:

The myth of the rational education market

By Peg Tyre
August 11, 2011
By Peg Tyre
The opinions expressed are her own. 

In this excerpt from “The Good School: How Smart Parents Get Their Kids the Education They Deserve,” author Peg Tyre explains how the educational “free market” created by the charter school system doesn’t guarantee parents will pick the best schools for their kids. In fact, with objective information hard to come by, even more pressure is on parents to gain -- and exploit -- data about school quality in order to outperform the educational market.

from MacroScope:

Political economy and the euro

February 8, 2010

The reality of  'political economy'  is something that irritates many economists -- the "purists", if you like. The political element is impossible to model;  it often flies in the face of  textbook economics;  and democratic decision-making and backroom horse trading can be notoriously difficult to predict and painfully slow.  And political economy is all pervasive in 2010 -- Barack Obama's proposals to rein in the banks is rooted in public outrage; reading China's monetary and currency policies is like Kremlinology; capital curbs being introduced in Brazil and elsewhere aim to prevent market overshoot; and British budgetary policies are becoming the political football ahead of this spring's UK election. The list is long, the outcomes uncertain, the market risk high.

from Funds Hub:

GAIM 2009: Hendry goes long

June 18, 2009

 

Maverick hedge fund manager Hugh Hendry is rarely far from controversy and his appearance at the GAIM conference in Monaco this week was no exception.