Ben Bernanke famously quipped that monetary policy works in practice, but not in theory. This column bridges the gap between practice and theory in assessing how central banks can influence both of them by intervening in asset markets. To the extent that asset market volatility is driven by shifts in beliefs, the central bank should aim to eliminate that volatility by engaging in countercyclical unconventional monetary policy, which would end up reducing the risk premium.
Roger Farmer, Pawel Zabczyk, 26 October 2016
John Quiggin, 03 December 2010
John Quiggin of the University of Queensland talks to Viv Davies about his recently published book, which describes some of the economic ideas that he believes played a role in creating the global financial crisis. He refers to the Great Moderation, the efficient markets hypothesis, DSGE, ‘trickle-down’ economics and privatisation as ‘zombie’ ideas, which should have been killed off by the financial crisis, yet for some reason still live on in the minds of many economists and policy-makers. The interview was recorded in London in November 2010. [Also read the transcript]
This 3 day conference at St Catherine's College, Oxford University hosts speakers from Oxford, LSE, UCL, World Bank brings together many of the new and emerging themes in the economics of welfare. Theory tracks focus on social choice and welfare, and other related aspects of welfare economic theory and public economics. Empirical/applied tracks focus on policy areas including health, development, social policy, environment, education, poverty reduction, non-monetary measures of economic progress etc. Papers on applied econometrics or experimental work relevant to welfare economic theory and assumptions about human behaviour also welcome.