Martin Wolf Archive

Fiscal and monetary policy in a liquidity trap

Not bad, but let’s take it up to the next level. Comments below: Fiscal and monetary policy in a liquidity trap By Martin Wolf With floating fx, it’s always a ‘liquidity trap’ in that adding liquidity to a system necessarily not liquidity constrained is moot. Part 1 What is the correct approach ...Read More

The Political Genius of Supply-Side Economics

Where am I wrong, if at all? I agree with the political analysis. I know Bruce Bartlett and he’ll be the first to tell you he does NOT understand monetary operations. Even simple statements like ‘China keeps its dollars in its reserve account at the Fed’ seem to cause him to glass ...Read More

And the Wolf responds..

[Skip to the end] (email exchange – in response to previous email)   >    >   On Thu, Jan 15, 2009 at 5:09 PM, Martin Wolf wrote: >    >    >   Inflation is default. >    I respectfully do not agree. Default is failure to make payment as agreed. There is no zero inflation contract. In fact, ...Read More

FT.com The Economists’ Forum: Why Washington’s rescue cannot end the crisis story

Why Washington’s rescue cannot end the crisis story by Martin Wolf Last week’s column on the views of New York University’s Nouriel Roubini (February 20) evoked sharply contrasting responses: optimists argued he was ludicrously pessimistic; pessimists insisted he was ridiculously optimistic. I am closer to the optimists: the analysis suggested a highly ...Read More