TheMoneyIllusion

A slightly off-center perspective on monetary problems.

Most Recent

Is the Fed holding down growth? (Just the opposite)

December 08, 2018

I occasionally get comments suggesting that the Fed is somehow “holding down growth” in the economy.  That makes me wonder if the Fed has some sort of magic dust, capable of holding down growth without leaving a trace.  So let’s look at some of the traces the Fed has actually left. Before... Read More >>
Other Posts

Rogue nation


Most foreign policy experts in the US, and the overwhelming majority of foreign countries, believe the Iran nuclear deal was a... Read More >>

Zombie ideas that just won’t die


This post is loosely related to themes such as “The Great Stagnation” and “The Complacent Class”, to cite two recent books... Read More >>

Is China a threat?


Tyler Cowen responded to my recent post, arguing that China is a threat to the liberal world order: If you are the... Read More >>

Why no US/India trade war?


Tyler Cowen has a new Bloomberg post on the recent truce in the US/China trade war.  Here is a rare example... Read More >>

Those inscrutable occidentals


Put yourself in the position of the Chinese leadership, trying to figure out the goals of Western policymakers, particular the Americans.... Read More >>

Too much of a good thing is boring


America keeps getting richer, but it doesn’t seem to be making us happier. There is an epidemic of depression among the... Read More >>

What about the TIPS spread?


I’ve recently been asked about why I don’t put more weight on the TIPS spread, as compared to 3 to 5... Read More >>

What kind of Fed “put”?


This caught my eye: The Federal Reserve has to be careful for appearing to flinch from hiking interest rates due to market... Read More >>

Should we target total wages or average hourly wages?


This post was inspired by a recent Nick Rowe post, which uses an AS/AD diagram to compare inflation and NGDP targeting... Read More >>