What do others think about Paul Romer’s worries… (II)

The discussion on Paul Romer’s “The Trouble with Macroeconomics” continues in the blogosphere, and Simon Wren -Lewis’s “Paul Romer on macroeconomics” is one of the Must-Reads. In his comments, Wren-Lewis said that Romer’s view is extremely valuable. He agrees with Romer that macroeconomists obsessed with the microfounded model, and this … read the whole thing…

Paul Romer is worried about Macroeconomics… and what others think about his worries…

Paul Romer’s latest paper “The Trouble with Macroeconomics” is definitely one of the hottest topic in the economics blogosphere. The central message is that Romer thinks the state of Macroeconomics has been going backward ever since the Real Business Cycle Theory and DSGE model took the center stage of macroeconomics. Accroeding … read the whole thing…

Why Negative Rate is a better policy tool to Higher Inflation Target? Bernanke Explains…

In his latest Brookings blog post “Modifying the Fed’s policy framework: Does a higher inflation target beat negative interest rates?”, Ben Bernanke compares two policy tools central banks can use to stimulate the economy – the hotly discussed idea of Raising Inflation Target and Negative Interest Rate. The TLDR answer … read the whole thing…