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The Taylor Rule and the natural rate of interest
A few weeks ago I commented on whether or not the Market Monetarist position that a 5% growth rate of NGDP (before the subprime crisis) could have been too much. The main point was that other nominal variables did not behave in accordance to what would expected in monetary equilibrium. Because other widely used measures, […]
READ MOREHigh Butter Prices, Melting
If you’ve been to the grocery store recently, you’ve probably noticed that butter and dairy prices had been trending higher until recently. The big drop in butter prices in March is an interesting part of the story of the changing cost of living.
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