tag:blogger.com,1999:blog-2499715909956774229.post5224756115368913779..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Natural RatesStephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2499715909956774229.post-78129835635281734652018-05-20T08:33:22.201-07:002018-05-20T08:33:22.201-07:00Thanks.Thanks.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-2337368516039727102018-05-19T04:43:42.623-07:002018-05-19T04:43:42.623-07:00More news on this: In response to the backlash fro...More news on this: In response to the backlash from "mainstream" economists saying that Erdogan's view was unscientific and inconsistent with macroeconomic theory; Cemil Ertem, the president's senior economic advisor, wrote a small article on a Turkish newspaper explaining neo-Fisherism, even citing Cochrane's paper on NK models in it. Here's a link: http://www.milliyet.com.tr/yazarlar/cemil-ertem/enflasyon-faiz-uzerine-teorik-bir-2670467/<br /><br />(Google Translate may help somewhat, but it's not needed to see the Fisher equation written in bold.) It seems that Erdogan is not the only one who is convinced.Ege Erdilhttps://www.blogger.com/profile/14895992514799937784noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-71901202768055248682018-05-15T17:02:56.929-07:002018-05-15T17:02:56.929-07:00Yes, I saw that too. When Erdogan first started ta...Yes, I saw that too. When Erdogan first started talking about this - months or years ago - I thought it was just a slip of the tongue. But apparently he's convinced. What he's proposing is the opposite of how we might typically think about this. Usually it's the independent central bank that is defending itself against a takeover by the fiscal authority, which is thought to want higher inflation. Erdogan wants low inflation, and he thinks he can get it if he takes over the central bank.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-85822915579713050342018-05-15T15:15:47.188-07:002018-05-15T15:15:47.188-07:00The president of Turkey confirmed today, before a ...The president of Turkey confirmed today, before a gathering of international finance specialists in London, UK, that he is devoted to neo-Fisherism. He is said by those in attendance that he fight Turkey's high inflation rate by lowering interest rates if re-elected to office in the upcoming June general elections. He further stated that he will take over the finance ministry when elected. The news was not well received at the London gathering.<br /><br />For those who maintain that Fisher's hypothesis of the relation between interest rates and inflation has validity, and those who advocate for neo-Fisherian inflation control policies, Erdogan's announcement is a rare opportunity to see the effectiveness of those policies in a real-world, real-time setting, if he is returned to office.Old Eagle Eyehttps://www.blogger.com/profile/05270080708077871311noreply@blogger.com