Posts Tagged macroeconomic policy
“Is Paul Krugman leaving Princeton in quiet disgrace?” That’s the headline over Ralph Benko’s column in the latest issue of Forbes. And it’s a doozy of a story. First, Mr. Benko notes the official statement from Princeton after the announcement of Prof. Krugman’s departure → Mr. Benko characterizes this as “tepid.” I’d say it’s more like, […]
Blanchard’s argument is that by raising the inflation target, nominal interest rates would be higher. This, he proposes, would give central banks more room to reduce interest rates to stimulate the economy. Unfortunately, Prof. Blanchard has made an error that should make him blush.