Mike Norman Economics

The correct question is, Can we not afford a GND? So when we look at the cost of the climate proposals out there against today’s macroeconomic background, the question should not be, are they too expensive? The question should be: Are they expensive enough? The purpose of policy is meeting policy goals effectively and efficiently. This means getting as close as possible in the design solution to "just right — not too much and not too little."But in the case of serious challenges...

Victoria Guida: 25:18 Victoria Guida with Politico. Another money-market question. Banks have been pointing to liquidity rules as having contributed to some of the volatility we’ve seen in repo markets and potentially some capital rules as well. Are you all looking at whether some tweaks to the liquidity coverage ratio might help and also, what is the status of the net stable funding ratio rule? Are you all still planning on putting that out soon? Jerome Powell:...

Did exactly what I said they would do.

Are the faults of capitalism curable, or are they instead symptoms of a chronic disease? This is the question posed by Martin Wolf: What we increasingly seem to have…is an unstable rentier capitalism, weakened competition, feeble productivity growth, high inequality and, not coincidentally, an increasingly degraded democracy. There is much to admire in this piece. But I fear it understates the problem with capitalism.... Falling rate of profit?Stumbling and MumblingThe trouble with...

At least to this observer, Europe and the U.S. bring to mind the fumbling and growing desperation that Japan went through during the long period of political instability before strongman Abe arrived. To turn modern monetary theory into practice, you need functioning and decisive fiscal coordination and plans that go beyond the expediencies of annual budget cycles or election cycle pork-barreling. No fiscal policy vision, no fiscal dominance... make no mistake! Abe-Aso-Kuroda do know what...

This is interesting from the point of view of evolution of MMT criticism.It's not the same old "printing money" argument but a refurbished one that at least attempts to get what MMT says, even though it fails. I think that it is more likely ill-informed rather than intentional caricature.But it does indicate that the opposition is realizing that it has to deal with MMT in a way that appears serious rather than back of the hand, just dismissing as "obvious" nonsense.So I would count this as...

This is Part 2 of my two-part commentary and analysis of the – Monetary policy decisions – by the ECB (September 12, 2019). In Part 1, I discussed the shifts in the deposit rate and the changes to the Targeted longer-term refinancing operations (TLTROs). In Part 2, I am focusing on the decision to introduce a two-tiered deposit rate on excess reserves, which is designed to reduce the costs of the penalty arising from the negative deposit rate regime that the ECB has had in place since June...

More bearish news.... oh... wait a minute...U.S. home construction surged in August to the fastest pace since mid-2007 https://t.co/s380TLPrLB— Bloomberg (@business) September 18, 2019

FT Open day today where you can read lots of articles for free.https://www.ft.com/the-big-read

Economies are not delivering for most citizens because of weak competition, feeble productivity growth and tax loopholes I haven't been able to read a FT article for two weeks, but today the paywall let me in. FT must allow people to read an article for free from time to time. This is an excellent article describing what is wrong with present capitalist system, and it goes over a lot of different areas.Martin Wolff describes the feedback loop where certain companies can attract the best...