“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. Continue Reading →
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. Continue Reading →