tag:blogger.com,1999:blog-7905515.post1451718634897509307..comments2024-03-14T11:09:32.759-05:00Comments on Falkenblog: Bernanke PanicsEric Falkensteinhttp://www.blogger.com/profile/07243687157322033496noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-7905515.post-81150903791282184052010-11-05T20:48:42.950-05:002010-11-05T20:48:42.950-05:00I think German Finance Minister Schaeuble said it ...I think German Finance Minister Schaeuble said it best: "With all due respect, U.S. policy is clueless"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-21909205703185015192010-11-04T08:04:09.472-05:002010-11-04T08:04:09.472-05:00I follow the guys over at FFT check out their late...I follow the guys over at FFT check out their latest forecasts about the US elections. Spot on, they called the crash of 08' and are definatly worth a look.<br />http://www.forecastfortomorrow.com/news/2010/11/major-hit-us-electionsChiphttps://www.blogger.com/profile/10339102233804859884noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-25240005163048759662010-11-03T19:18:23.135-05:002010-11-03T19:18:23.135-05:00Well, you have to admit those words were spoken be...Well, you have to admit those words were spoken before the Great Financial Crisis proved all economists were full of it...<br /><br />--Charley (Not Karl either)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-82897882243235870002010-11-03T17:49:43.510-05:002010-11-03T17:49:43.510-05:00Honoring one's ancestors is all very fine, but...Honoring one's ancestors is all very fine, but we need to move on. Friedman was working in the context<br />of primitive models such as the quantity theory.<br />We have better, micro-founded monetary models now such as those developed by Ricardo Lagos, Randy Wright, Stephen Williamson.<br />These are models that allow us to ask deeper questions about monetary policy.pclenoreply@blogger.comtag:blogger.com,1999:blog-7905515.post-70705999276578807182010-11-03T11:41:00.812-05:002010-11-03T11:41:00.812-05:00The monetary base doubled in the Great Depression,...The monetary base doubled in the Great Depression, but Milton Friedman said more tinkering was needed. <br /><br />Here is a good analysis that applies Friedman's views to the current situation:<br /><br />http://macromarketmusings.blogspot.com/2010/11/reply-to-those-who-claim-we.htmlThe Money Demandhttp://themoneydemand.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-9041680175224948272010-11-03T11:15:34.450-05:002010-11-03T11:15:34.450-05:00There was a lot of contractionary policy by the fe...There was a lot of contractionary policy by the fed in the Great Depression. If you think Friedman would have approved of tinkering like this to increase demand, I disagree.Eric Falkensteinhttps://www.blogger.com/profile/07243687157322033496noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-51138250380585131252010-11-03T10:49:15.732-05:002010-11-03T10:49:15.732-05:00Eric's post is a complete misrepresentation of...Eric's post is a complete misrepresentation of Milton Friedman's views. The Fed had three separate massive QE programs during the Great Depression, yet Friedman is famous for insisting that money was too tight in a Great Depression, as he was looking at broad monetary aggregates and nominal spending trends.The Money Demandhttp://themoneydemand.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-7905515.post-45091590142122979092010-11-03T10:29:47.587-05:002010-11-03T10:29:47.587-05:00Milton Friedman's words "stable monetary ...Milton Friedman's words "stable monetary background" refer to stable growth of broad monetary aggregates, not to the stable growth of monetary base. The chart of monetary base is irrelevant, you should present a chart of M3 growth.The Money Demandhttp://themoneydemand.blogspot.com/noreply@blogger.com