Elliott waves and Cambridge

[Bradford DeLong]

>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