My very short interview on NGDP targeting with Izabella Kaminska

Here is a link to my 40 second interview on NGDP targeting with FTAlphaville’s Izabella Kaminska.


Niklas Blanchard is blogging again

Our good friend and Market Monetarist Niklas Blanchard is blogging again. See his excellent new post on “What Does the Market Know that John Taylor Knows that the Market Knows?”

Scott Sumner also comments on John Taylor’s WSJ article – as do Marcus Nunes.

Banking, regulation and monetary policy failure – blog posts I didn’t write today

Today I participated in a very interesting conference organized by the Danish Institute for International Studies on Central Banking at a Crossroads: Europe and Beyond”.  So far the conference has been extremely good despite the fact that I disagreed with most of what I heard all day. I could write a long post on my reflections on today’s conference, but instead I will just give you the seven headline on papers or blog posts I would like to have written today. Here they are:

1) The Public Choice Theory of Banking Resolution

2) Why Bryan Caplan’s theory of rational irrationality will teach you that deposit insurance is counterproductive

3) Regulators as cheerleaders of the boom

4) Why Goodhart’s law is telling us that macroprudential indicators are useless

5) Why banking crisis is a result of monetary policy failure rather than market failure

6) Bank of Japan’s “dual mandate” – price stability and financial stability. The BoJ failed on both for 15 years.

7) Dodd-Frank and the Patriot act – a reflection of the same kind of regulatory irrationality.

I think you get the drift – I am not too impressed with the idea that the solution to today’s problems is more regulation. Today’s crisis is primarily a result of failed monetary policy rather too little regulation.

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