2 percent and the fiscal-monetary mix

Of Kiwis and Currencies: How a 2% Inflation Target Became Global Economic Gospel by Neil Irwin

THE FISCAL-MONETARY MIX by Chris Dillow

(via Thoma)

fiscal councils

How Fiscal Policy Failed During the Great Recession by Mark Thoma

But I’m not very hopeful that Congress will change its ways voluntarily, any more than I think the financial system will change on its own. So what else can we do? Another answer would be to create an independent, Fed style committee in charge of making recommendations for fiscal policy during recessions. Unlike the Fed, the committee wouldn’t actually set fiscal policy, it would only make recommendations to Congress (preferably a plan that is budget neutral over a period of years, and a plan that would take effect unless Congress votes it down)

Person of Interest

Butlerian Jihad: "Thou shalt not make a machine in the likeness of a human mind."

AV Club reviews Person Of Interest: “The Cold War”

Baker, DeLong and Krugman on monetary policy

"Since Abe took office, Japanese companies have had little problem hiring workers. The employment to population ratio has risen by two full percentage points in the less than two years since Abe took office. This would be comparable to an increase in employment in the United States of almost 5 million people. That is almost 1 million more than the job growth we have actually seen over this period."

The Washington Post Wants Japan to Fire Workers by Dean Baker

Over at Equitable Growth: I Hate Those Blurred Lines! Monetary Policy and Fiscal Policy: Daily Focus by DeLong