Lars Christensen has a new website
One of the founding members of market monetarism (and the guy who provided the name) has a new website, called Markets and Money Advisory.
Each MM has their own special area of expertise, and I see Lars as the leading figure on the implications for MM for various European countries. He had a career at a top Danish investment bank and is very knowledgeable about what’s going on across the Atlantic.
He’s also our most stylish presenter:
Lars also informed me:
We are also launching a new – for pay – publication: Global Monetary Conditions Monitor (12 months for 2,000 euros).
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31. March 2017 at 08:03
I could have sworn Lars and Scott were in a student-teacher relationship, but I am told I’m misinformed. Hmm, what ELSE don’t I know about?
1. April 2017 at 11:07
Off-topic: this is the ECB explaining “how QE works”. Elsewhere in their website they mention “various channels”, but here… just one.
http://www.ecb.europa.eu/explainers/show-me/html/app_infographic.en.html
1. April 2017 at 12:04
@lysseas
The ECB is doing this all the time. Draghi as well. The FED as well. Nearly every statement they make is the same. They often say things like: Credit unavailability is the problem. We want to affect interest rates and by that the cost of credit and by that the availability of credit and by that somehow “boost” the economy.
That’s their main channel (not to say their only channel). They even teach that to students. Never ever to they mention the channels ssummner mentioned. It’s really odd. I don’t get it either.
2. April 2017 at 20:06
Good Luck to Lars!
OT to Scott Sumner:
Recently you posited that the US does not consume more than it produces, with the difference being made up by imports.
http://johnhcochrane.blogspot.com/2017/04/consumption-vs-gdp.html#more
Cochrane seems to say the US in fact consumes more than it produces.
“How does the US consume more than we produce (GDP)? We borrow from abroad, and run trade deficits. Eventually that lending must be paid back. (Or at least those lending it to us hope so. We’ll see.)”–Cochrane.
In fact, I think Cochrane misses a key point, that is we can sell assets, not borrow, to fund consumption. The problem is when property is zoned, you can end up with house-price explosions.
Also, the people offshore holding dollars are not satisfied with trailers, even Airstreams, but insist on having land underneath the housing they buy.
But on the key point—yes, Americans consume more than they produce.
Is there such a thing as a free lunch?
2. April 2017 at 23:31
@B. Cole – yawn. The silly slide show you linked to presupposes a number of things, like money non-neutrality, like the absence of a Fisher effect, like the fact that cheap loans are not an issue when people don’t want to invest (animal spirits drive markets, not interest rates, which follow) not to mention it ignores debt overhang (balance sheet recession). But otherwise, it was good.
3. April 2017 at 06:16
Ray “El Greco” Lopez:
I hope you are wearing a helmet.
What you have purged from your rear aperture must have been ejected with such force as to generate lift.
If you live in a low-ceiling dwelling, I fear a cranial injury may ensue.
3. April 2017 at 16:17
I predict Sumner’s case of Trump Derangement Syndrome will have been cured by the time he reads this. And he will know why too.
4. April 2017 at 14:12
This just in: “President Lacker quits Fed”
Who is next to replace him? I will put my money on a longshot: Scott Sumner for Fed governor! Why not? I certainly don’t mind. Money is neutral and short of hyperinflation there’s very little harm that can be done by the Fed. Better the devil you know (Sumner) than some untried entity.
4. April 2017 at 16:45
Ray, money is not neutral, and no amount of repeating it is neutral will ever change that
4. April 2017 at 16:51
Lacker was asked to resign after he was discovered to have leaked information, in other words he was fired
The swamp that needs draining runs very deep
4. April 2017 at 20:20
@MF – we agree to disagree on money neutrality. Unlike our host, who buries his head in the sand, have you read Bernanke’s 2002 FAVAR paper that shows money neutrality? Oh wait, you’re an Austrian who does not believe in empirical evidence, just thought experiments.
As for DC leaks, it’s a time honored tradition that Trump is trying to stop but it’s futile. Even David Stockman admitted to leaking news all the time, in his excellent book “Triumph of Politics”, which I just finished reading. This kiss-and-tell memoir is an absolute classic. Stockman was a dyed in the wool monetarist BTW, and much to his chagrin, his apocalyptic predictions about the ‘twin deficits’ never did come to pass (yet). Our host should do a column on this book, it’s very good and underscores how inflation is largely irrelevant (real growth rates were about the same in the high-inflation Carter decade as they were in the low-inflation Reagan decade, see: http://www.multpl.com/us-real-gdp-growth-rate/table/by-year) . In other words, money is neutral.