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Responding to Scott Sumner
Scott Sumner cites this passage from my previous post about coordination failures. I can envision a pure barter economy with incorrect price expectations in which individual plans are in a state of...
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Can We All Export Our Way out of Depression?
Tyler Cowen has a post chastising Keynesians for scolding Germany for advising their Euro counterparts to adopt the virtuous German example of increasing their international competitiveness so that...
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Credibility and the Central Bank Balance Sheet
Scott Sumner has been making the argument lately that a central bank with credibility can limit the growth of its balance sheet more effectively than a central bank that is not credible. The context...
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CAUTION Accounting Identity Handle with Care
About three years ago, early in my blogging career, I wrote a series of blog posts (most or all aimed at Scott Sumner) criticizing him for an argument in a blog post about the inefficacy of fiscal...
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Savings and Investment Aren’t the Same Thing and There’s No Good Reason to...
Scott Sumner responded to my previous post criticizing his use of the investment-savings identity in a post on the advantages NGDI over NGDP, and to my posts from three years ago criticizing him for...
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Why Theories of National Income Based on Accounting Identities Are...
In this installment of my series on Richard Lipsey’s essay “The Foundations of the Theory of National Income,” I am going to focus on a single issue: what inferences about reality are deducible from a...
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Excess Volatility Strikes Again
Both David Henderson and Scott Sumner had some fun with this declaration of victory on behalf of Austrian Business Cycle Theory by Robert Murphy after the recent mini-stock-market crash. As shocking as...
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Economic Prejudice and High-Minded Sloganeering
In a post yesterday commenting on Paul Krugman’s takedown of a silly and ignorant piece of writing about monetary policy by William Cohan, Scott Sumner expressed his annoyance at the level of ignorance...
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Scott Sumner Defends EMH
Last week I wrote about the sudden increase in stock market volatility as an illustration of why the efficient market hypothesis (EMH) is not entirely accurate. I focused on the empirical argument made...
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The Free Market Economy Is Awesome and Fragile
Scott Sumner’s three most recent posts (here, here, and here)have been really great, and I’ld like to comment on all of them. I will start with a comment on his post discussing whether the free market...
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Sumner on the Demand for Money, Interest Rates and Barsky and Summers
Scott Sumner had two outstanding posts a couple of weeks ago (here and here) discussing the relationship between interest rates and NGDP, making a number of important points, which I largely agree...
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What’s Wrong with EMH?
Scott Sumner wrote a post commenting on my previous post about Paul Krugman’s column in the New York Times last Friday. I found Krugman’s column really interesting in his ability to pack so much real...
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Making Sense of Rational Expectations
Almost two months ago I wrote a provocatively titled post about rational expectations, in which I argued against the idea that it is useful to make the rational-expectations assumption developing a...
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Yes, Judges Do Make Law
Scott Sumner has just written an interesting comment to my previous post in which I criticized a remark made by Judge Gorsuch upon being nominated to fill the vacant seat on the Supreme Court — so...
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Cyclical versus Secular Causes of Stagnation
Nick Rowe and Scott Sumner have recently had an interesting little debate about whether the slowdown in real GDP growth and labor productivity since the 2007-09 downturn is the result of cyclical or...
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What Is This Thing Called “Currency Manipulation?”
Over the past few years, I have written a number of posts (e.g., here, here and here) posing — and trying to answer — the question: what is this strange thing called “currency manipulation?” I have to...
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Defining Currency Manipulation for Scott Sumner
A little over a week ago, Scott Sumner wrote a post complaining that I had not yet given him a definition of currency manipulation. That complaint was a little bit surprising to me, because I have been...
View ArticleWelcome to Uneasy Money, aka the Hawtreyblog
UPDATE: I’m re-upping my introductory blog post, which I posted ten years ago toady. It’s been a great run for me, and I hope for many of you, whose interest and responses have motivated to keep it...
View ArticleKrugman and Sumner on the Zero-Interest Lower Bound: Some History of Thought
UPDATE: Re-upping my post from July 8, 2011 I indicated in my first posting on Tuesday that I was going to comment on some recent comparisons between the current anemic recovery and earlier more robust...
View ArticleKrugman on Mr. Keynes and the Moderns
UPDATE: Re-upping this slightly revised post from July 11, 2011 Paul Krugman recently gave a lecture “Mr. Keynes and the Moderns” (a play on the title of the most influential article ever written about...
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