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Cloud Yip

Economics Correspondent and Editor of "Where is the General Theory of the 21st Century?"Responsible for the writing, editing and other stuff on this website. My English is very far from perfect, please accept my apology. If you think this website needs any improvements, please leave a comment and let me know.

Economics Rules – Why Economists do it with Models | Q&A with Dani Rodrik

Rodrik tells us that good economists think in terms of models, and there are major differences between models and theory. He also comments on macroeconomists quest on finding the "one true model" on the business cycle,

“The Rate of Return on Everything, 1870-2015” and its liquidity premium problem

How Alan Taylor, one of the authors of "The Rate of Return on Everything, 1870-2015" explains the liquidity premium problem when we compare the rate of return on Housing and Equity

Integrating Psychology with Economics | Q&A with Hersh Shefrin & Shlomo Benartzi

This weekend is a big one for behavioral economics. This morning, Richard Thaler, laureate of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017, has presented his prize lecture "Integrating economics with psychology" in The Royal Swedish Academy of Sciences. And this Sunday will be the Nobel Prize Award Ceremony, Prof. Thaler will finally the well-deserved Nobel prize.To celebrate this occasion, I am honored to share with you my interview with two of the best co-authors of Prof. Thaler --- Hersh Shefrin and Shlomo Benartzi.

Why Yellen should stay as Fed Governor? | Q&A with Conti-Brown

When President Trump decided to nominate Jay Powell instead of Janet Yellen to be the next Federal Reserve Chair, my mind was full of interesting questions on how this decision impacts the institution of the Fed. In my opinion, one of the best experts to answer my question would be Peter Conti-Brown, assistant professor at The Wharton School of the University of Pennsylvania and author of one of the best book about the institution of Fed --- "The Power and Independence of the Federal Reserve".

WITGT21 Round 2 and more…

You might not notice, but I have been taking a little break from this project for some time. In the last two years, I...

How to Maintain Prosperity for All | Q&A with Roger Farmer |

In this interview, Prof. Farmer explains to us: Why are multiple equilibria modeling better compared to the standard unique equilibrium model? Why should "belief" be an important component to macroeconomic modeling? Why should central banks consider stock market intervention in stabilizing the employment markets?

Why the Fed should Keep a Sizeable Balance Sheet? | Q&A with Jeremy...

Former Fed Governor Jeremy Stein explain to us his recent research “The Federal Reserve's Balance Sheet as a Financial-Stability Tool” coauthored with Robin Greenwood and Samuel Hanson.

Understanding the Great Recession | Q&A with Larry Christiano |

Following our discussion on post-2008 Macroeconomics developments and the importance of DSGE models in part I of the interview, we asked Prof. Christiano about one of his recent and important research paper "Understanding the Great Recession". What does his model tell us about the Great Recession? Does labor participation rate have a role in the developments of the Great Recession? These are the questions we've discussed with Prof. Christiano, and he has some great answers.

A Macroeconomic Earthquake | Q&A with Larry Christiano

In this interview, Prof Christiano shared his view on the development of post-2008 academic macroeconomics. We’ve asked Prof Christiano does he agree that modern macroeconomic models are too complicated for the general public, or even policymakers and if he agrees that economic models should be “simpler”. Does he think the recent revival of ISLM model a “good trend”? Should Macroeconomists hang on their faith in DSGE models? Should they explore alternative paths?
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The effects of Unconventional Exchange Rate and Monetary Policy | Q&A with Joseph Gagnon

The honorable guest for this installment is Joseph E. Gagnon, senior fellow at Peterson Institute for International Economics (PIIE). We discussed one of his latest research paper "Unconventional Monetary and Exchange Rate Policies" and the new book he coauthored with C. Fred Bergsten, "Currency Conflict and Trade Policy: A New Strategy for the United States". Gagnon also shared his view on the very popular "Global Financial Cycle" ideas.