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UK RGDP saved by accelerating NGDP

The second estimate of UK RGDP released today showed an even more stark acceleration in UK NGDP than in the first estimate. Back in January, we had to use the Nominal (Current Prices) Gross Value Added as a proxy for NGDP as the headline number is only released with the second estimate. GVA is a good proxy
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I do not know much about Daniel Tarullo, the recently resigned board member of the Federal Reserve. He is a lawyer who spent a lot of time inside the Clinton administration working on international law, international financial regulation and banking law – and must have watched the implementation of Basel I very closely. After Clinton
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The crime of 2008

In 1997, Bernanke (with Gertler and Watson) wrote “Systematic Monetary Policy and the Effiects of Oil Price Shocks“: THE PRINCIPAL OBJECTIVE of this paper is to increase our understanding of the role of monetary policy in postwar U. S. business cycles. We take as our starting point two common findings in the recent monetary policy literature based
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Comes news that Daniel Tarullo is resigning his post in April on the seven-member U.S. Federal Reserve Board of Governors, the arbiter of nation’s money supply.  That leaves three vacancies. As noted in this space, despite declining headline unemployment rates, the U.S. economy never really recovered from the 2008 Great Recession. Labor participation rates have
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The fantasy world of conventional central bankers where money has no role

Lawrence Christiano writes “The Great Recession: A Macroeconomic Earthquake”. The summary reads: The Great Recession was particularly severe and has endured far longer than most recessions. Economists now believe it was caused by a perfect storm of declining home prices, a financial system heavily invested in house-related assets and a shadow banking system highly vulnerable
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Missing the forest for the trees

In commenting on the GDP release, James Hamilton writes: But I’m struck by the fact that the low levels of business fixed investment are mirrored by low spending on new home construction and autos, two consumer-based components of GDP that historically usually exhibit similar cyclical dynamics to non-residential fixed investment. Shows these charts: And continues:
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All so obvious to Wren-Lewis but, really, all so poor

A recent blog by Simon Wren-Lewis Attacking economics is a diversionary tactic was so muddled it nicely illustrated just what is wrong with (macro)economics today. I have followed his numbered points in replying: 1. The UK imported the financial crisis from overseas due to the collapse in the US subprime market. That “collapse” just happened, exogenously.
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