blogs.ft.com - 12/30/2008
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By Roger E.A Farmer
The US recession that began in December 2007 resulted in 403,000 lost jobs in September, 320,000 in October and 533,000 jobs in November. Projections for 2009 are ominous.
krugman.blogs.nytimes.com - 1/2/2009
nytimes.com - 1/5/2009
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nytimes.com —
Let’s not mince words: This looks an awful
lot like the beginning of a second Great Depression.
Will we “act swiftly and boldly” enough to stop that from happening? >
(more)
Op-Ed Columnist: Fighting Off Depression
economistsview.typepad.com - 12/30/2008
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economistsview.typepad.com —
Roger Farmer says the Fed needs to target
an asset price index "to prevent bubbles and crashes":
How to prevent the Great Depression of 2009, by Roger E.A Farmer, Financial Times : ...Since world war two, economic policy in most ...
(more)
"How to Prevent the Great Depression of 2009"
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"How to Prevent the Great Depression of 2009"
Economist's View —
...
How to prevent the Great Depression of 2009, by Roger E.A Farmer, Financial
Times: ...Since world war two, economic policy in most western democracies
has been based on Keynesian economics. But although policy makers still rely on
Keynes' ideas, academics gave up on his theories 40 years ago and went back to
classical economics... The result has been 40 years of disconnect in which
policy makers are tinkering with the engine without a manual. ... ...
Should the government peg the S&P 500?
Marginal Revolution —
The very well known macroeconomist Roger Farmer says yes: It is time for a greatly increased role for monetary policy through
direct intervention of central banks in world stock markets to prevent
bubbles and crashes. Central banks control interest rates by buying and
selling securities on the open market.
A logical extension of this idea is to pick an indexed basket of
securities: one candidate in the US might be the S&P 500, and to
control its price by buying and selling blocks of shares on the open
market.
That is from the ...
More Great Ideas
Daily Options Report —
... Amazingly, this piece comes from an economics professor writing in The Financial Times, not The Onion. So where do we go from here? The only actor large enough to restore confidence in the US market is the US government. The current policy of quantitative easing by the Fed is a move in the right direction but it does not, as yet, go nearly far enough. It is time for a greatly increased role for monetary policy through direct intervention of central banks in world stock markets to prevent bubbles and crashes. Central banks control interest ...
Open Market Operations in Equities
Greg Mankiw's Blog —
UCLA economist Roger Farmer suggests the Fed buy some stock: So where do we go from here? The only actor large enough to restore confidence in the US market is the US government. The current policy of quantitative easing by the Fed is a move in the right direction but it does not, as yet, go nearly far enough. It is time for a greatly increased role for monetary policy through direct intervention of central banks in world stock markets to prevent bubbles and crashes. Central banks control interest rates by buying and selling ...
Pegging a Stock Price Index
Economist's View —
... I wrote in 1992. ... Given the recent turmoil
in financial markets, and the renewed interest in having central banks look at
asset prices, I was wondering whether to resurrect this paper, but dithered. Now
Roger Farmer has beaten me to it. Mark Thoma posted it on
his ...
How "Something For Nothing" Ideas Become Policy
Mish's Global Economic Trend Analysis —
... Greenwood, Chief Economist, Invesco Perpetual Group Michael J. Oliver, Lombard Street Research and ESC Rennes School of Business Gordon Pepper, Lombard Street Research David B. Smith, University of Derby Simon Ward,Chief Economist, New Star Asset ManagementThe above list consists of those signing the above Financial Times article. Ideas On Propping Up The Stock Market Roger E.A Farmer is writing How to prevent the Great Depression of 2009. For much of the post-war period, the US ...
Friday links: extraordinary opportunities
Abnormal Returns —
... Some eerie parallels via Google Trends. (Infectious Greed)
The difference between a recession and a depression. (Crossing Wall Street)
Trade finance is collapsing. (Econbrowser)
Expect a pick-up in protectionist rhetoric. (Daniel Drezner)
Should the Fed target asset prices directly? (FT.com also Economist’s View, ibid ...
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