Commentary on current economic and financial news.
I’ve commented numerous times over the the last 3 years that I considered the IMF’s position on Europe dangerously misguided as I felt it was based more on ideology than evidential analysis (see more here). I have posted on a near-daily basis over the last 2 years on the slow downfall of the euro-zone under what I considered to be a policy framework that was doing more harm than good due, in part, to the fact that it underestimated the feedback from on-going government sector austerity in an environment of private sector balance-sheet retrenchment.
Central banks cannot control the money supply. And not many central banks past the mid-1980s gave any credibility to monetary targeting. They realized that central banks can control only interest rates, not the money supply.
More on the macro wars. This is from Beyond Mechanical Markets: Asset Price Swings, Risk, and the Role of the State, by Roman Frydman & Michael D. Goldberg: ... To be sure, the upswing in house prices in many markets...