Comments on: NY Fed research report- a payroll tax holiday will make the economy worse http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/ St Croix, United States Virgin Islands Wed, 23 May 2012 10:08:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: knapp http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13427 knapp Sun, 15 Nov 2009 23:53:14 +0000 http://www.moslereconomics.com/?p=9381#comment-13427 Google Gauti, Bernanke, Michael Woodford, and Brian Sack and Zero-bound, and you'll discover just how influential Gauti's views are within the Fed. These guys have written or edited dozens of papers and books together. So Gauti is no outlier. He's an elite member of the Bernanke "brain" trust. Google Gauti, Bernanke, Michael Woodford, and Brian Sack and Zero-bound, and you’ll discover just how influential Gauti’s views are within the Fed. These guys have written or edited dozens of papers and books together. So Gauti is no outlier. He’s an elite member of the Bernanke “brain” trust.

]]> By: Ralph Musgrave http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13397 Ralph Musgrave Sun, 15 Nov 2009 16:46:32 +0000 http://www.moslereconomics.com/?p=9381#comment-13397 Can someone contact the “fed guy” Eggertsson and ask him what he would do if his net personal wealth quadrupled as a result of being given the requisite number of dollars or Treasuries? Can someone contact the “fed guy” Eggertsson and ask him what he would do if his net personal wealth quadrupled as a result of being given the requisite number of dollars or Treasuries?

]]> By: warren mosler http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13384 warren mosler Sun, 15 Nov 2009 11:57:56 +0000 http://www.moslereconomics.com/?p=9381#comment-13384 Yes, agreed. That paper was very constructive. The payroll tax paper is one that somehow got by the censors. I don't think they would have published it if they were aware of that assumption. Yes, agreed. That paper was very constructive.

The payroll tax paper is one that somehow got by the censors.
I don’t think they would have published it if they were aware of that assumption.

]]> By: Ramanan http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13379 Ramanan Sun, 15 Nov 2009 08:01:52 +0000 http://www.moslereconomics.com/?p=9381#comment-13379 The Ricardian equivalence and the ideas like that are difficult to get out of people's head. Even if people appreciate national and reserve accounting a bit, they fall pray to statements like private sector will save rather than spend. It becomes difficult for them to digest the fact that the deficit can be increased to even higher levels that the private sector's saving desire has been satisfied and they start spending. But the author must have worked a while at the Fed and other places and studied a lot - so a black mark really. Warren there was however a good paper I saw recently at the NY Fed site http://www.newyorkfed.org/research/current_issues/ci15-4.pdf so probably the Fed is not all that bad. One of the authors is the same person who you mentioned a few months back. (Why are banks holding so many excess reserves). It builds the story of the crisis as a Repo Run and the measures the Fed took. The Ricardian equivalence and the ideas like that are difficult to get out of people’s head. Even if people appreciate national and reserve accounting a bit, they fall pray to statements like private sector will save rather than spend. It becomes difficult for them to digest the fact that the deficit can be increased to even higher levels that the private sector’s saving desire has been satisfied and they start spending. But the author must have worked a while at the Fed and other places and studied a lot – so a black mark really.

Warren there was however a good paper I saw recently at the NY Fed site http://www.newyorkfed.org/research/current_issues/ci15-4.pdf so probably the Fed is not all that bad. One of the authors is the same person who you mentioned a few months back. (Why are banks holding so many excess reserves). It builds the story of the crisis as a Repo Run and the measures the Fed took.

]]> By: warren mosler http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13363 warren mosler Sun, 15 Nov 2009 01:17:36 +0000 http://www.moslereconomics.com/?p=9381#comment-13363 the ricardian equiv assumption the fed guy is making says that if a guy is behind in his mtg payment and he gets a tax cut he'll save it rather than make the payment because he knows taxes must go up later. the ricardian equiv assumption the fed guy is making says that if a guy is behind in his mtg payment and he gets a tax cut he’ll save it rather than make the payment because he knows taxes must go up later.

]]> By: Ramanan http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13340 Ramanan Sat, 14 Nov 2009 20:13:24 +0000 http://www.moslereconomics.com/?p=9381#comment-13340 Yeah, stock markets may even cheer up on the news - thinking low deficits is great. It may take a while for the bad effects to happen to the markets, when profits numbers are declared next year. Direct impact such as unemployment increase can happen fast. Yeah, stock markets may even cheer up on the news – thinking low deficits is great. It may take a while for the bad effects to happen to the markets, when profits numbers are declared next year. Direct impact such as unemployment increase can happen fast.

]]> By: warren mosler http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13331 warren mosler Sat, 14 Nov 2009 10:34:40 +0000 http://www.moslereconomics.com/?p=9381#comment-13331 timing is everything on shorting the stock market. also, i'm not close enough to the companies to know what forecast they are already pricing in. and if he's right bond yields should fall as well, which might be the easier trade, but, again, I don't give direct trading advice on this website timing is everything on shorting the stock market.

also, i’m not close enough to the companies to know what forecast they are already pricing in.

and if he’s right bond yields should fall as well, which might be the easier trade, but, again, I don’t give direct trading advice on this website

]]> By: bb http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13308 bb Sat, 14 Nov 2009 01:30:39 +0000 http://www.moslereconomics.com/?p=9381#comment-13308 warren i just saw mike normans website and he is recommending shorting the market as obama deficit cutting pledge will lead to disaster. Historically how long wil it take for this to be seen in the economy. warren i just saw mike normans website and he is recommending shorting the market as obama deficit cutting pledge will lead to disaster. Historically how long wil it take for this to be seen in the economy.

]]> By: Sensei http://moslereconomics.com/2009/11/13/ny-fed-research-report-a-payroll-tax-holiday-will-make-the-economy-worse/comment-page-1/#comment-13296 Sensei Fri, 13 Nov 2009 23:22:40 +0000 http://www.moslereconomics.com/?p=9381#comment-13296 Nothing makes me wanna save less and spend more than a brand new "investment tax credit." WTF?! Have these economists ever met real people? Nothing makes me wanna save less and spend more than a brand new “investment tax credit.” WTF?! Have these economists ever met real people?

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