tag:blogger.com,1999:blog-2499715909956774229.post8930030873085862155..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Bizarre-Statement -of- the-Month ClubStephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2499715909956774229.post-34172427835634486482010-11-04T19:42:29.308-07:002010-11-04T19:42:29.308-07:00Yes, it's just like Rudebusch, and just as goo...Yes, it's just like Rudebusch, and just as goofy.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-56419186609648113212010-11-04T14:11:09.175-07:002010-11-04T14:11:09.175-07:00Steve,
Surely his statement about short term inter...Steve,<br />Surely his statement about short term interest rates in like Rudebusch's calculations about what the short term interest rate would be under a Taylor rule. It's just a way quantifying how binding the zero lower bound is.<br />Meyer is not a genius but he's not THAT stupid.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-90161112637644965702010-11-03T13:58:09.804-07:002010-11-03T13:58:09.804-07:00So much for WSJ reporting. Maybe he's saying h...So much for WSJ reporting. Maybe he's saying he thinks this is unlikely to accomplish much. I might consider revoking the award.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-65484810038357258022010-11-03T12:43:03.714-07:002010-11-03T12:43:03.714-07:00Steve,
I think that the calculation is based on t...Steve, <br />I think that the calculation is based on the (linear) estimates of the previous impact of buying $300b long-term Treasury bonds on 10 years yields. <br /><br />MA estimated that 300b lowered these yields by roughly 9 bp. Then <br />$500 billion -- > -15 bp, which, they argue, is what -60 bp in the Funds rate would do.<br /><br />These back-of-the-envelope calculations are contained in a note titled: "Brother, Can You Spare $5 Trillion? LSAPs and the Prescribed Funds Rate" that circulated last week. The note itself had a quite skeptical tone which, perhaps, got lost in the WSJ article.Conte6noreply@blogger.com