Tag Archives: Great Moderation

Ben Bernanke, the Fed and the Tea Party

Ben Bernanke is not a Tea Party sort of person. An academic appointed as Chair of the US Federal Reserve (“the Fed”) by a Republican President (Bush II) and re-appointed by a Democrat President (Obama) who helped organise the bailout of Wall St in response to the Global Financial Crisis (GFC), he is the epitome of […]

Bubble trouble: all information is not equal

This post is partly prompted by this comment and this paper (pdf) (via) on the US housing price bubbles and busts and (greatly) extends this comment by myself. It is also a response to the work of mathematician-turned-historian Andrew Odlyzko. In a previous post, I argued that easy monetary policy was not to blame for the asset booms […]

Bubble trouble: not an easy money problem

The notion that “easy money” created asset booms is levelled (famously by Austrian school economists such as von Mises and Hayek) against the 1920s boom and by a range of commentators about the Great Moderation boom. In both cases, the Fed (dominated by Benjamin Strong as New York Fed Governor up to 1928 and by Alan Greenspan as Fed Chair 1987-2006) is held to be to […]

Don’t mention the A-word

The Eurozone, the US, Japan and the UK are all suffering prolonged economic stagnation. [You can see how serious it is in the US here.] It is sensible to suggest that they are doing something (or perhaps many things) wrong and need to change policy. What is not sensible is ignoring a developed world economy […]