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This was posed as an ‘economics’ question:

What is the future of ZLB monetary policy?

Even as we exit the zero lower bound it seems as though the U.S. and the rest of the developed world will be at risk of returning to the ZLB in future recessions.

Inflation seems to be much harder to generate than it was in the past and the relationship between inflation and expectations seems to be breaking down, and I suspect we’ll see policymakers get desperate and try helicopter money, and Miles Kimball’s ideas.

Twenty years from now, how different will “conventional” monetary policy be than it is today?

Inflation may be a completely different beast in a world of late development economies with central banks that have proven they can defeat inflation.

It is actually two questions and three statements. There are other ‘questions’ posed. I haven’t actually bothered to look too closely at them. With this much imprecision, it is no wonder economists are largely held in contempt.

Inflation is actually everywhere. House prices, food prices and asset prices are the most glaring and obvious examples. Government statistics exhibit some of the finest examples of Nelsonian blindness that you will ever see.

To actually address the general gist of the ‘question’, viz, ‘inflation’: inflation is always the result of a credit expansion.

The real question that should have been asked is: why after a prolonged credit expansion is productivity [still] so low?

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