Monetary policy seems like some strange dark art where we think we have more control over the world than we actually do, and we’re probably not seeing some of the most important unintended consequences of our actions. You have to do the best you can based on what you understand, so I mostly agree with the monetary policy regime, but wouldn’t be surprised if we look at things very differently in 50 or 100 years. (The history of the subject is really rather recent — the Federal Reserve was born in 1913, and Nixon only fully took us off the gold standard in 1971.)
This resonates for me (it’s interesting though how you and I still draw different conclusions on whether to build up the supply of monetary stimulus or not; seems like some underlying differences in how we each relate with the use of leaky abstractions like MMT in practice?).
Thanks, I appreciate learning from you here.
A separate topic you might be interested in would be Modern Monetary Theory.
I’ll make time to read this paper and arguments for MMT policy when/if OpenPhil writes up their updated review later this year. For now, got to focus on digging into other research and research programs.
Awesome yeah, this was a great discussion. Relevant to OpenPhil’s grantmaking and it’s great to have a venue for discussing thorny questions in a reasonable way. I probably trust the monetary establishment a bit more and see newer proposals as more predictable / within the historical distribution of what we’ve seen before. But I’m not an expert and definitely could change my views here. Really appreciate your perspective and would be happy to follow up later.
I probably trust the monetary establishment a bit more and see newer proposals as more predictable / within the historical distribution of what we’ve seen before.
This resonates for me (it’s interesting though how you and I still draw different conclusions on whether to build up the supply of monetary stimulus or not; seems like some underlying differences in how we each relate with the use of leaky abstractions like MMT in practice?).
Thanks, I appreciate learning from you here.
I’ll make time to read this paper and arguments for MMT policy when/if OpenPhil writes up their updated review later this year. For now, got to focus on digging into other research and research programs.
Awesome yeah, this was a great discussion. Relevant to OpenPhil’s grantmaking and it’s great to have a venue for discussing thorny questions in a reasonable way. I probably trust the monetary establishment a bit more and see newer proposals as more predictable / within the historical distribution of what we’ve seen before. But I’m not an expert and definitely could change my views here. Really appreciate your perspective and would be happy to follow up later.
Glad this opened up a richer discussion :)
Got it.
Happy to have a chat in February btw. Will try to read the paper you linked to before our call in that case: https://calendly.com/remmelt/30min/?month=2022-02&date=2022-02-01