What I said in Vilnius

I am in Lithuania at the moment and today I spoke at the Baltic Investment Forum. Here is a report on what I said – it is mostly a fair description of what I actually said. If you don’t bother to read the conclusion is the following: Easier monetary policy, fiscal consolidation and structural reforms.

PS Richard Koo and I had a great debate about the crisis. Richard believe we are in a balance sheet recession and we need expansionary fiscal policies to get us out of the crisis, while I believe in monetary easing. Lets just say we did not agree on anything.

Talking to the Lithuanian Prime Minister and Finance Minister…



“The case for Nominal GDP targeting” by Scott Sumner

This Working Paper from Mercatus Center is highly recommendable, but I am particularly proud of footnote 28:

“Lars Christensen coined the term market monetarist and has been a forceful advocate of combining NGDP targeting with a less interventionist approach to banking. See Lars Christensen, “Scott Sumner and the Case against Currency Monopoly . . . or How to Privatize the Fed,” The Market Monetarist, October 23, 2011; and Lars Christensen, “NGDP Level Targeting—The True Free Market Alternative (We Try Again),” The Market Monetarist, July 19, 2012.”

Read Scott’s paper – the important thing is that we are making inroads with our “natural allies” – libertarians and conservatives.

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