Macroeconomics

Congress Investigates DSGE Models: One Witness Says Big Problem Is The Lack of Brain Power

You may have guessed that I enjoy poking the ruling elite in economics. That was the case with a self-declared tyrant that threatens the careers of my students, a Fed VC who thinks it is best to have neither his students at Columbia nor researchers at the Fed be trained in modern computational skills, and …

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Macroeconomists endorse Barro (1979). I prefer Dehejia and Rowe (1995).

At today’s macro conference hosted by John Taylor, George Hall presented his paper with Tom Sargent titled “Three world wars: Fiscal-monetary consequences” at today’s Taylor conference. James Bullard asked Hall and Sargent to compare their analysis of taxation and spending with the Barro theory. In their paper, Hall and Sargent say “After World War I …

Macroeconomists endorse Barro (1979). I prefer Dehejia and Rowe (1995). Read More »

Why can’t the Fed be as good as the Bank of Canada?

I am at John Taylor’s annual macroeconomic conference on monetary policy. The first panel included comments from Richard Clarida and Larry Summers. Time for questions ran out so I put mine here. Larry Summers said he asked an RA to run simulations of FRB/US, the primary Fed model, and reported that the results said a …

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Clarida to Columbia students: Ask NYU professors for help

Richard Clarida presented “Monetary policy in open economies–Practical perspectives for pragmatic central bankers” at John Taylor’s 2014 conference “Frameworks for Central Banking in the Next Century” . The following is a cleaned up version of my comments and question to Prof. Clarida. The original transcript is at the end of this post. I’m Ken Judd …

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I ask a question, Gabaix insults everyone else in the room

Like most economists, I like to ask questions in seminars and conferences. Sometimes the answers are quite informative. One interesting case was In November, 2017, I attended the Midwest Macroeconomics conference (https://editorialexpress.com/conference/MMMPitt/program/MMMPitt.html#block_detail_3). Xavier Gabaix was one of the plenary speakers. The tile of his talk was “Behavioral Macroeconomics” and he presented a paper titled “Behavioral …

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