Sunday, March 27, 2016

On the blogs

Two reasons DSGE models are such spectacular failures -- Lars Syll on the limits of DSGE models, including New Keynesian ones. He notes correctly that even the New Keynesian ones have an intertemporal consumption model, and have abandoned the old multiplier story

Helicopter drops might not be far away -- A bit old, but Martin Wolf suggests that if fiscal policy is off the table, then central banks could "send money, ideally in electronic form, to every adult citizen"

Why the Fed Should Raise Rates and Purchase More Assets -- Old, but not as much. Where Roger Farmer argues that "the Phillips Curve is like the Planet Vulcan. Although observed by eminent astronomers in the early twentieth century: it was never actually there." Which is probably correct, but he then concludes that the Fed should hike rates, which is probably not

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