George Evans: The Dynamic Properties of New Keynesian Models with Learning

[heckler73]

Where does Minsky fit into all of this?

[polvotierno]

In Japan in spite of expectations of inflation, they have deflation...

Does this model show that economic forces overrule expectations?

Do economic winds blow around the graph and we navigate on the graph like sailors?

... Is the learning really a process of navigation through calm or stormy conditions?

Is the unintended steady state seen as a relatively safe place to weather the storm?

Even so, if the economic winds were strong enough, would they simply blow us into deflation?

Edward Lambert

[polvotierno]

Why do the supply-siders want to raise nominal interest rates?

My view is that they want to maximize marginal capitalist benefits (to coin a new term)... that is what supply-side economics is... and their calculations are showing that capitalists, or certain capitalists can make more profits with higher nominal interest rates...

It doesn´t matter to them that marginal social benefits will suffer... they are only interested in maximizing gains for the capitalists...

[markthoma]

Please note that there is a typo on the graphs in the video. The "beta inverse" term on the horizontal axis should be "beta." No inverse. The .99 values in the right-hand graph is correct.