Belongia and Ireland on the Fed’s Romanace with the Phillips curve

There is no doubt that I believe that the Federal Reserve under the leadership of Fed Chair Janet Yellen has kept monetary conditions too tight and I have particularly blamed Yellen’s 1970s style obsession with the Phillips curve for this. Michael Belongia and Peter Ireland have a very good comment over at Manhattan Institute’s E21 site […]

The Hetzel-Ireland Synthesis

I am writing this while I am flying with Delta Airlines over the Atlantic. I will be speaking about the European crisis at a seminar on Friday at Brigham Young University in Provo, Utah. I must admit that it has been a bit of a challenge to blog in recent weeks. Mostly because both my […]

Orphanides also wonders what happened to the ECB’s monetary pillar

Yesterday the Shadow Open Market Committee (SOMC) held its regular semi-annual meeting in New York. It is no secret that many of the members of the SOMC have had a large influence on my monetary thinking – just to mention some of them Bennett McCallum, Michael Bordo, Peter Ireland, Marvin Goodfriend and Charles Calomiris all […]

Money and DSGE models – a few good papers

In this very good recent interview with the always extremely insightful David Laidler on Russ Robert’s Econtalk David rightly highlights the problem that money disappeared from macroeconomics during the 1990s with the development of DSGE models. I share David’s worry that many macroeconomists – particular central bank economists – use models where there is no […]

Time for a comeback to the SOMC – but it should be a monetarist SOMC and not an Austrian SOMC

I have always been a huge fan of the Shadow Open Market Committee (SOMC). However, it is having a much less prominent role in US monetary policy debate today than used to be the case in the good old days. A reason is that the SOMC played a very important role in as a counterweight […]