Policy needs to pivot post-lockdown
Post-lockdown the economy will need a different kind of stimulus
The role of monetary and fiscal policy during lockdown was to sustain household and corporate cashflows in the face of an intentional freezing o...
Helicopter money as Covid response
Here are my slides from the Rebuilding Macro workshop on helicopter money....
Macro policy proposals – immediacy is the metric
Policy response (updated)
Tax rebates for corporates & households, zero interest rates on mortgage and corporate loan refinancing, no debt capital repayment, targeted lending & QE, dual rates, yield cappin...
Policy response
Policy response
Tax rebates for corporates & households, targeted lending & QE, dual rates, yield capping in the Eurozone - there is lots that both monetary and fiscal authorities can and should do.
Th...
How long secular stability?
Economics is a curious field of study. For a subject that focuses so much on rational behaviour it is distinctly human. The tribalism borders on parody - post-keynesians, new keynesians, liberal, conservative, ...
Draghi’s historic farewell
This week’s policy decision by ECB is historic. For some time now, a number of economists have suggested that dual interest rates are the logical next step in the arsenal of central banks. Dual interest rates r...
Reply to Larry Summers
An ‘Either-Or’ approach to fiscal and monetary policy is mistaken
Larry Summers has delivered a pointed and sweeping critique of the prevailing consensus among central bankers. He rightly asserts that relian...
The Prudence Principle: a new rule for fiscal policy
Should the government run a budget deficit or a budget surplus? What size should the deficit or surplus be?
Devising a rule which allows the public to assess the integrity of government is a major challenge...
Cyclical sovereignty
Only two of the world’s major economic blocks appear to have cyclical autonomy - China and the United States. For many decades now, Japan’s ability to stimulate domestic demand has been trivial relative to cycl...