{"id":119995,"date":"2009-12-31T10:53:13","date_gmt":"2009-12-31T15:53:13","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2009\/12\/31\/secondary-sources-harsh-lessons-stimulus-models-feds-exit\/"},"modified":"2009-12-31T10:53:13","modified_gmt":"2009-12-31T15:53:13","slug":"secondary-sources-harsh-lessons-stimulus-models-fed%e2%80%99s-exit","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/119995","title":{"rendered":"Secondary Sources: Harsh Lessons, Stimulus Models, Fed\u2019s Exit"},"content":{"rendered":"<p><em>A roundup of economic news from around the Web.<\/em><\/p>\n<div dir=\"ltr\">\n<ul>\n<li><a href=\"http:\/\/www.chinadaily.com.cn\/opinion\/2009-12\/31\/content_9249981.htm\"><strong>Looking Back on &#8216;09:<\/strong><\/a> Writing in China Daily, <strong>Joseph Stiglitz<\/strong> recounts five &#8220;harsh lessons&#8221; from 2009: 1) Markets are not self-correcting. 2)  There are many reasons for market failures. In this case, too-big-to-fail  financial institutions had perverse incentives. 3) Keynesian policies do work.  4) There is more to monetary policy than just fighting inflation. 5) Not all  innovation leads to a more efficient and productive economy &#8211; let alone a better  society.<\/li>\n<li><strong><a href=\"http:\/\/johnbtaylorsblog.blogspot.com\/2009\/12\/its-been-nearly-year-since-stimulus.html\">Modeling Stimulus:<\/a><\/strong> On his Economics One blog, <strong>John Taylor<\/strong> looks at  economic models used to measure the impact of the stimulus package. &#8220;Frequently  the same economic models that said, a year ago, the impact would be large are  now trotted out to show that the impact is large. In other words these  assessments are not based on the actual experience with the stimulus. I think  this has confused public discourse.&#8221;<\/li>\n<li><a href=\"http:\/\/www.econbrowser.com\/archives\/2009\/12\/term_deposit_fa.html\"><strong>Fiscal vs. Monetary Policy:<\/strong><\/a> <strong>James Hamilton<\/strong> discusses the Federal  Reserve&#8217;s announcement this week to create a new term deposit facility. &#8220;We  sometimes describe fiscal policy as determining the overall level of the public  debt, while monetary policy determines the composition of that debt between  money and interest-bearing federal obligations. By that definition, the Fed has  clearly now entered the realm of implementing fiscal policy, by issuing debt  directly in the form of interest-bearing reserves, reverse repos, and now term  deposits. &#8230; My advice would be the sooner the Fed can return to plain vanilla  central banking, the better.&#8221;<\/li>\n<\/ul>\n<\/div>\n<p><a href=\"http:\/\/feedads.g.doubleclick.net\/~at\/j_VSLMOPq6qP0lMlfIO7VLBHw60\/0\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~at\/j_VSLMOPq6qP0lMlfIO7VLBHw60\/0\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><br \/>\n<a href=\"http:\/\/feedads.g.doubleclick.net\/~at\/j_VSLMOPq6qP0lMlfIO7VLBHw60\/1\/da\"><img decoding=\"async\" src=\"http:\/\/feedads.g.doubleclick.net\/~at\/j_VSLMOPq6qP0lMlfIO7VLBHw60\/1\/di\" border=\"0\" ismap=\"true\"><\/img><\/a><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?a=yw5L5nhKDcU:PV0sBSoQBHQ:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?a=yw5L5nhKDcU:PV0sBSoQBHQ:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?i=yw5L5nhKDcU:PV0sBSoQBHQ:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?a=yw5L5nhKDcU:PV0sBSoQBHQ:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?i=yw5L5nhKDcU:PV0sBSoQBHQ:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?a=yw5L5nhKDcU:PV0sBSoQBHQ:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/wsj\/economics\/feed?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/wsj\/economics\/feed\/~4\/yw5L5nhKDcU\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A roundup of economic news from around the Web. Looking Back on &#8216;09: Writing in China Daily, Joseph Stiglitz recounts five &#8220;harsh lessons&#8221; from 2009: 1) Markets are not self-correcting. 2) There are many reasons for market failures. In this case, too-big-to-fail financial institutions had perverse incentives. 3) Keynesian policies do work. 4) There is [&hellip;]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-119995","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/119995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=119995"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/119995\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=119995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=119995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=119995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}