The Money Mischief

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2022 has been a year full of uncertainties for the global economy so far, and it looks like it will continue. Rising inflation, the invasion of Ukraine, and supply chain problems arising from China and Russia… None of this makes the Fed's job any easier. But even before all this…
After reading Scott Sumner's recent paper on the Princeton School of Macroeconomics and Zero Lower Bound, I revisited papers of other Princeton economists. In the second part of the paper, Sumner discussed the Princeton School's relationship with new schools of thought such as…
Central bank digital currency may sound like an innovative and modern idea, but given the risks, there’s no reason for it to happen.
The reason we worry about recessions is mostly involuntary unemployment. Because recessions cause employment fluctuations, and this affects the entire economy. But, why do recessions cause employment fluctuations? Indeed, this question is one of the most important questions at…

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I have to admit that I have rarely used the IS-LM model since I became interested in economics. Instead, I find the AD-AS model much more useful. Of…
There has been a heated debate lately about whether inflation is transitory or not. I think I caught this discussion a little late, but for various…
First of all, I have to say that this post will be radically different from other posts on my blog. I've never written a personal post here before. Of…
I think most people understand the supply and demand less than we think. That's because supply and demand are more confusing and complex than what is…
The Fed announced the CPI for May: 0.6% is still at a fast pace. But I don't think we should worry. The rates announced so far match Claudia Sahm's…
There has been a buzz on EconTwitter and academia lately. I think the first thing I saw on this was Tyler Cowen's post, where he compared blogs and…
In recent years, the Fed predicted inflation would be below the target. For a while, inflation remained below 2%. It has risen above 2% this year, and…
On Twitter, I come across dozens of different bad analyzes, especially about economics. This is just one of them…
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The Money Mischief

Welcome to my blog on the interminable problems of macroeconomics, especially monetary policy.
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