Short links this week, China and monetary policy are two areas that almost anyone who considers themselves financially savvy probably has an opinion in which they are too confident by a factor of 10.
- Timothy Taylor discusses a paper by Kirkegaard about Chinese education plateauing: Both the paper and Taylor’s analysis put a slightly more pessimistic spin on things than I would have. China is becoming educated and people are reaping the rewards, soon they will realize they need more education to get the same rewards their parents got, and the next generations will act accordingly.
- Scott Sumner discusses the current monetary environment and how various schools of economic thought vary in their explanations: Given my own strong monetarist leanings, I think the descriptions of the other schools are fair, though maybe they are less charitable than I think.
I for one still believe that low rates (and/or QE) don’t mean easy money, that monetary policy is still highly effective at zero rates, that fiscal policy is mostly ineffective, even at zero rates, that level targeting is especially beneficial at the zero bound, that central banks should target the market forecast, that markets are efficient…
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