Elliott waves and Cambridge

Bradford DeLong jbdelong at uclink.berkeley.edu
Tue Sep 10 10:16:55 PDT 2002



>Brad DeLong wrote:
>
>>Because it's the only effective lever of macroeconomic control that
>>we have, given the Congress's... limited... ability to conduct
>>discretionary fiscal policy in a timely fashion...
>
>What's the state of thinking these days on the monetary transmission
>mechanism? Lately in the U.S. it seems to operate via effects on the
>stock market, the housing market, and psychololgy. Investment hasn't
>responded to the lowest interest rates in a generation.
>
>Doug

The vector auto regressions don't show any sign of weakening in the monetary transmission mechanism. But the more detailed econometric work has always been mush. We really don't know what the most important channels are, or how they are shifting...

Brad DeLong

-- J. Bradford DeLong Department of Economics, U.C. Berkeley Berkeley, CA 94720 http://www.j-bradford-delong.net/ delong at econ.berkeley.edu

"I do not understand how universal bankruptcy can do any good or bring us nearer to prosperity."

--John Maynard Keynes



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