by Summary:
This article represents my initial comments on the question of the stability implications of locking interest rates at zero. Martin Watts, an Australian academic, had an interesting presentation at the first Modern Monetary Theory (MMT) conference (link to videos of presentations). Although MMT fits within a broad-tent definition of "post-Keynesian" economics, there are still sharp debates with other post-Keynesians. One topic of debate is the effect of permanently locking the policy interest rate at zero, which is a policy advocated by many MMT economists. In my view, this is a debate that is best approached by using stock-flow consistent (SFC) models. Bond Economics Initial Comments On Zero Rate Policy And Inflation StabilityBrian Romanchuk
Topics:
Mike Norman considers the following as important: inflation, interest rate setting, MMT, Natural Rate, policy rate, zero interest rate policy, ZIRP
This could be interesting, too:
This article represents my initial comments on the question of the stability implications of locking interest rates at zero. Martin Watts, an Australian academic, had an interesting presentation at the first Modern Monetary Theory (MMT) conference (link to videos of presentations). Although MMT fits within a broad-tent definition of "post-Keynesian" economics, there are still sharp debates with other post-Keynesians. One topic of debate is the effect of permanently locking the policy interest rate at zero, which is a policy advocated by many MMT economists. In my view, this is a debate that is best approached by using stock-flow consistent (SFC) models. Bond Economics Initial Comments On Zero Rate Policy And Inflation StabilityBrian Romanchuk
Topics:
Mike Norman considers the following as important: inflation, interest rate setting, MMT, Natural Rate, policy rate, zero interest rate policy, ZIRP
This could be interesting, too:
Matias Vernengo writes Inflation, real wages, and the election results
Merijn T. Knibbe writes ´Extra Unordinarily Persistent Large Otput Gaps´ (EU-PLOGs)
Jim Stanford writes Interrogating the ‘Vibecession’
Merijn T. Knibbe writes More ´Natural rate of unemployment´ busting, bad measurement edition.
This article represents my initial comments on the question of the stability implications of locking interest rates at zero. Martin Watts, an Australian academic, had an interesting presentation at the first Modern Monetary Theory (MMT) conference (link to videos of presentations). Although MMT fits within a broad-tent definition of "post-Keynesian" economics, there are still sharp debates with other post-Keynesians. One topic of debate is the effect of permanently locking the policy interest rate at zero, which is a policy advocated by many MMT economists. In my view, this is a debate that is best approached by using stock-flow consistent (SFC) models.Bond Economics
Initial Comments On Zero Rate Policy And Inflation Stability
Brian Romanchuk