Economic Growth, Macro-Models, and a Move to the Hoover Institution

[@michaeljacobs4546]

This guy is rare - not many young economists have this grasp of history of economic thinking.

[@BenTrem42]

compliments ... in contrast to baseless slander

[@tvchurch]

Great stuff Jon. Welcome to the Hoover podcasting family!

[@BenTrem42]

compliments ... in contrast to baseless slander

[@RN-lo6xc]

What a wonderful discussion - more of this thinking is needed to balance out the prevailing orthodoxy of economics

[@BenTrem42]

compliments ... in contrast to baseless slander

[@patricksullivan4329]

The basic problem here is (apparently) John Cochrane does not understand that interest rates are not 'the prices of money'. Milton Friedman's monetary theory depends crucially on recognizing this. Ben Bernanke understood it when he was at Princeton, but seemed to forget it when he was Fed Chairman. Scott Sumner understands it, which is why he wants to use nominal GDP as a monetary policy guide.. Manipulating interest rates won't give you coherent monetary policy, because interest rates are the prices of renting money, not of buying money. The two prices often move in opposite directions. Until this is accepted wisdom among economists, you'll fail to understand what is good monetary policy.

[@michaeljacobs4546]

i would add that the young Jon has an unusual grasp of economic history as well for your typical young econ phd candidate. That said old John is giving him a run for his money.

[@BenTrem42]

compliments ... in contrast to baseless slander

[@michaeljacobs4546]

dd to the deficiencies of the so-called state of the art macro models the failure to incorporate banking intermediation and you have crap worse than useless or dare I say dangerous, so just rely on IS-LM and story telling to run monetary policy.

[@BenTrem42]

4th comment ... nice to say that at least 1 has some substance. I hope this evidences that discussion and discourse are not //entirely// dead. ^5

[@BenTrem42]

Is this not plop.plop fizz.fizz for the audience while the cognoscenti conform to given norms? p.s. my "SenseMaking" play list. (Through history, some chose to actually write of their days.) kzbin.info/aero/PLVb-PJ7ut0cIDZW4xIU67cuvIiHvwiiX6

[@BenTrem42]

I see a long series of "Oh gee isn't this nice" *_Likes_* and ... as I would have any day or night predicted ... not the slightest hint of discussion. Key point? Were I wrong, I might get stomped. Being right about #GroupDynamics and #SocialPathology? /*cue crickts*/ Conservatism is notRPTnot an audience activity.