Brian Romanchuk — Growth Limits (Again)

Brian comments on Ramanan

Bond Economics
Growth Limits (Again)
Brian Romanchuk

Ramanan — Economists Can Be So Wrong

Contra Krugman, whose specialization is trade. Wynne Godley quote as a bonus.

The Case For Concerted Action
Economists Can Be So Wrong
Ramanan

Ramanan on some interesting history of economics

Contains some nice finds for those interested in the history of national accounting in economics.

The Case for Concerted Action
Random Tidbits On National Accounts And Keynesian Models Of Income And Expenditure
Ramanan

Ramanan — Origins Of The Sectoral Balances Identity

I thought I should share what I found recently about who was to state the sectoral balances identity first – since it comes across as enlightening to say the least. I found the identity in Nicholas Kaldor’s 1944 article Quantitative Aspects Of The Full Employment Problem In Britain.

The Case for Concerted Action
Origins Of The Sectoral Balances Identity
Ramanan

Ramanan — Open Mouth Operations

Most people think of open market operations as some kind of extra activity on the part of the central bank in collaboration with the bureau of engraving and printing and think of it as operational implementation of Milton Friedman’s helicopter drops! So when a central bank such as the Federal Reserve changes its target on interest rates – such as lowering the “Fed Funds target rate”, people start commenting as if the Federal Reserve is undertaking a mystical operation. 

This is Monetarist or Verticalist intuition. It is easy to show that open market operations have nothing to do with fiscal policy and as we saw in the previous blog – very little with monetary policy itself. The open market operation of the central bank is not an income/expenditure flow such as government expenditure flows or tax flows and the former does not affect the net worth of the change the net worth of either the domestic private or the foreign sector. Hence it is hardly fiscal. Yet commentators and economists keep arguing that the central bank is “injecting money” into the economy!

Even Paul Krugman erred on some of these matters and was shown how to do good economics by Scott Fullwiler in his post Krugman’s Flashing Neon Sign....

Read it all at The Case of Concerted Action
Open Mouth Operations
by Ramanan

Contains a piece by Wynne Godley at the end.

Ramanan posts on JKH's post on saving

The Case for Concerted Action (short)
Saving Versus Saving Net Of Investment
by Ramanan

Ramanan — The (Almost) Irrelevance Of Reserve Requirements

Ramanan quotes Basil Moore on reserves and show how reserves are irrelevant — almost. They do impose a cost.

Read it at The Case For Concerted Action
The (Almost) Irrelevance Of Reserve Requirements
by Ramanan

Ramanan — Some GIMP Fun With Spain’s Sectoral Balances

Read it at The Case For Concerted Action
Some GIMP Fun With Spain’s Sectoral Balances
by Ramanan

Spain’s Sectoral Balances

Read it at The Case of Concerted Action
Spain’s Sectoral Balances
by Ramanan