Inflation… Trapped!
SAO PAULO | By Marcus Nunes | One thing MMs have been saying for a long time is “stop talking about inflation”. But everyone else insists on doing so and now they are trapped.
Articles by Marcus Nunes
About the Author
Marcus Nunes
Marcus Nunes
Alan Greenspan: Idolized one day, demonized the next
SAO PAULO | By Marcus Nunes | It is a common occurrence with sports idols and some teen idols to be demonized in the next stage of their lives. But among Fed Chairmen, Alan Greenspan surely gets the ‘honor’ of being the first.
UK: Funny how some get heated up if inflation is above target, but feel it´s OK when it is below!
SAO PAULO | By Marcus Nunes | David Smith writes: “the inflation baloon’s still up in Britain”. The question now is… who ‘suffers’ more, the UK or 15 of the EU members that have inflation below 1%?
Do we really have a better understanding of the dynamics of inflation & business cycles?
SAO PAULO | By Marcus Nunes | Simon Wren-Lewis concludes considers that we now understand more about the dynamics of inflation and business cycles and so monetary policy is better. “And so monetary policy is better”, but… is it really?
Is Yellen ‘hot’ or ‘cold’, ‘hawk’ or ‘dove’?
SAO PAULO | By Marcus Nunes | The fact that Ms Yellen is a dove today does not imply that she would tolerate rising inflation tomorrow. She will need to persuade the markets, and the public, of that in the coming weeks.
Janet Yellen is ‘branded’
SAO PAULO | By Marcus Nunes | We know that over the next 10 years things only got worse and only got better when Volcker decided that to “live with inflation” was not a good deal. And things really improved when the Fed managed to keep the economy tracking a stable nominal trend level path.
Uncertainty over ‘uncertainty’
SAO PAULO | By Marcus Nunes | ‘Uncertainty’ is getting more and more attention. John Taylor is a great supporter, so much so that a while back I did a post with the title “Taylor´s Uncertainty Principle”, and argued that what was really keeping the recovery back was the “on and off” decisions by the Fed.
How I Love to Hate QE – A Guest Post by Benjamin Cole
PUERTO RICO | By Benjamin Cole via Marcus Nunes | Some might say I have a sociopathological hatred for quantitative easing, an atavistic reaction that compels me to find reasons, sensible sounding or otherwise, for detesting and opposing QE. But I have many reasons for opposing QE.
The “Great Moderation” = the “Great Stagnation”? Not according to ‘phase diagrams’
Abe Goes Ahead and Orders Tax Increase
SAO PAULO | Bu Marcus Nunes | What Japan needs to do is keep doing what Abenomics said it would. Since their explicit target is 2% inflation, they will have to ‘factor out’ the tax increase. In the past they didn’t and we know what happened. If the BoJ’s Kuroda does his job well Japan has a fighting chance to progress, and the median calculation of economists that expect a short-term contraction following the tax will not pan out.