Posts Tagged ‘Willem Buiter’

Buiter is bullish on the US dollar

Saturday, March 28th, 2015

FT blogger Izabella Kaminska reports that Willem Buiter, Citi

Keynes was wrong!

Monday, November 3rd, 2014

No reader responded, but I found, in today’s Financial Times, an intelligent argument debunking yesterday’s post “Keynes was right!“.

Does monetary policy become ineffective once interest rates reach zero? With negative interest rates, monetary policy can continue to work, regardless of how low interest rates go. Real negative rates are certainly possible, and often observed, when the rate of inflation is greater than the interest rate. But the relevant question is: Are negative nominal interest rates possible? Martin Sandbu, writing in the Financial Times, thinks so.

In liquidity trap models of the economy, the central bank is impotent. Although it can create money at will, this power no longer provides influence over interest rates or the ability to give the economy a boost.

The reason this is said to happen is a supposed

Buiter on the eurozone

Thursday, December 8th, 2011

Former LSE economist Willem Buiter is predicting dire consequences from breakup of the eurozone.

Consider the exit of a fiscally and competitively weak country, such as Greece

the overvalued euro

Tuesday, October 20th, 2009

The euro is soaring, and not only against the US dollar. LSE economist Willem Buiter explains that the euro’s overvaluation is a direct result of excessively tight monetary policy, so can be corrected with loose monetary policy.

The euro has become a currency on steroids.

the sad state of macroeconomics

Thursday, September 10th, 2009

Travel and jet lag have conspired to prevent me from commenting in opportune fashion on Paul Krugman’s long essay that was published in last Sunday’s New York Times Magazine. There is nothing new here, but the essay is well-written, in classic Krugman style, so very accessible to non-economists. Krugman covers a lot of ground, from Adam Smith to Keynes, to the New Classical and the New Keynesian schools. Do read the entire essay if you haven’t done so already. Even Greg Mankiw recomends it.

[B]elief in efficient financial markets blinded many if not most economists to the emergence of the biggest financial bubble in history. And efficient-market theory also played a significant role in inflating that bubble in the first place.

[….]

[E]conomists who inveighed against the stimulus didn