tag:blogger.com,1999:blog-7464708.post7769364663839426307..comments2024-03-22T06:05:36.544-04:00Comments on Kids Prefer Cheese: Do you believe in magic? Ryan Avent does!Mungowitzhttp://www.blogger.com/profile/02340064320347875601noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-7464708.post-68093694656216304732011-10-17T16:03:31.687-04:002011-10-17T16:03:31.687-04:00I think you are obviously wrong on this one. The ...I think you are obviously wrong on this one. The Fed makes believable commitments every day, saying it will pay its employees and meet at certain times. Its commitment mechanism is the fact that a reputation is a valuable durable goodJameshttps://www.blogger.com/profile/07970169457593645713noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-76003772869295472442011-10-11T18:37:45.164-04:002011-10-11T18:37:45.164-04:00Now I'm going to picture winged fairies with b...Now I'm going to picture winged fairies with beards and blazers for the rest of the night. Thanks, Angus.Jon Phttps://www.blogger.com/profile/10111853114718892212noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-82444047942984007962011-10-11T13:58:46.015-04:002011-10-11T13:58:46.015-04:00Suppose the Fed announced that it would conduct mo...Suppose the Fed announced that it would conduct monetary policy in such a way that the 5yr TIPS spread would be, say, 2.3% (+-0.1%). Scott Sumner, Ryan Avent et al. would all say this is a significant improvement over the current scenario when it comes to shaping expectations (even if it's not an NGDP target). Surely the Fed can commit to maintaining the kind of inflation expectations that in fact prevailed for most of the last decade... no?Richardhttp://shewingthefly.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-5951823414557040282011-10-11T13:34:34.481-04:002011-10-11T13:34:34.481-04:00I realize that measures like M2 show that a lot of...I realize that measures like M2 show that a lot of money has been created. OTOH, it also seems like inflation is still low.<br /><br />I find it impossible to believe that the central bank couldn't create inflation if it really wanted to.<br /><br />Pretending that the central bank could just promise instead of actually doing, and get the same effect, seems bizarre, though.John Thackerhttps://www.blogger.com/profile/15269867695937765049noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-49415374532111439402011-10-11T10:03:51.587-04:002011-10-11T10:03:51.587-04:00"Can the Fed convince markets that it will be..."Can the Fed convince markets that it will be irresponsible in the future?" Of <b>COURSE</b> it can! All it has to do is act irresponsible in the ten years leading up to now. <br /><br />Done!Tomhttps://www.blogger.com/profile/08574355302581451838noreply@blogger.comtag:blogger.com,1999:blog-7464708.post-24414453873462789512011-10-11T09:49:18.140-04:002011-10-11T09:49:18.140-04:00I guess the way to increase inflation (or raise ex...I guess the way to increase inflation (or raise expectations of future inflation) is to replace Bernanke with Krugman. Clearly, we can rationally expect the new chairman to do anything in his power to stimulate the money supply and some of it might stick.<br /><br />Nomination would be tricky of course, as the GOP does not seem to want inflation. Which brings us back to square one. "We" will only get inflation if "we" want it.Jovbhttps://www.blogger.com/profile/06718127086753264535noreply@blogger.com