Willem Buiter Archive

Buiter blog

[Skip to the end] The economics profession is a disgrace. None of them seem to fathom monetary operations. Fiscal expansions in submerging markets By Willem Buiter This morality tale has important consequences for a government’s ability to conduct effective countercyclical policy. For a fiscal stimulus (current tax cut or public spending increase) ...Read More

Twin deficit terrorists Ferguson and Buiter

[Skip to the end] This is the exact same line Niall Ferguson is spewing. He also says the two choices are inflating or defaulting. The inflation would be from too much aggregate demand and a too small output gap. That would mean that fatefull day would be an economy with maybe 4% ...Read More

Fed foreign currency swap lines

[Skip to the end] (IF ANYONE HAS BUITER’S EMAIL ADDRESS KINDLY FORWARD THIS, THANKS) The question is, why has the Fed entered into new swap lines to be able to borrow foreign currency from several CBs who already have Fed dollar lines? Several possibilities not mutually exclusive: They may have agreed on ...Read More

FT: Time for comrade Paulson to pull the plug on the Fannie and Freddie charade

[Skip to the end] Totally misguided regarding public purpose. For one thing, the shareholders of the agencies are still there for ‘market discipline’ – all that’s been done for them is eliminated liquidity issues, not solvency issues. At the end of the day a lot of houses were built for a lot ...Read More