There ain’t no cure for the Summers-time blues

The blogger Ironman has a post arguing that the Larry Summers rumors are depressing US stock prices.

PS.  Yes, the previous post was humblebrag.



6 Responses to “There ain’t no cure for the Summers-time blues”

  1. Gravatar of Patrick R. Sullivan Patrick R. Sullivan
    29. July 2013 at 09:56

    Forget the Fed, the most interesting experiment in monetary economics is going on in Zimbabwe;

    By abandoning the Zimbabwean dollar for USD, Rand, Pound and Euro, that economy has prospered (comparatively speaking). Vindicating Milton Friedman’s theories, I’d say.

    Unfortunately, there’s an election this week in Zimbabwe that 89 year old Robert Mugabe may be able to steal, and he’s threatening to bring back the Z-$.

  2. Gravatar of Becky Hargrove Becky Hargrove
    29. July 2013 at 10:07

    The title isn’t quite right without the song!

  3. Gravatar of Patrick R. Sullivan Patrick R. Sullivan
    29. July 2013 at 14:07

    Maybe it should be Marge;

    ‘ Gordon said…
    ‘It’s not a question of recoveries being slow. The market monetarists says it’s expectations that matter. Suppose you’re at a party being hosted by the Simpsons with Homer being the U.S. government and Marge being the Fed. If Homer is pouring the drinks, the expectations are that he’ll go overboard trying to please people and many of the party goers will end up severely drunk. Some people think Marge’s only role is to put out glasses and ice though people like Flanders believe that alone will lead to problems. If Marge is pouring the drinks but listening to the fears of Rev. Lovejoy to not pour too much, the party won’t get going. If Marge finally convinces people that she’ll keep the drinks flowing until the party takes off, THEN people will start committing to the party.’

  4. Gravatar of Gordon Gordon
    29. July 2013 at 15:35

    Yes, it should be Marge. I’m the one who left this comment on that site. I’m no economist but I thought it might be fun to expand the “punch bowl” analogy that economists use at times to a bigger analogy with the Simpsons. Those who advocate fiscal stimulus would be Homer’s friends Carl and Lenny. Those who have strong inflation and bubble phobia are Rev. Lovejoy and Flanders. Those who think the Fed’s only tool is interest rates would be akin to those who think Marge’s only job at the party is to supply glasses, ice, and mixers. Initially, Marge didn’t have any credibility that she would get the party going because she was influenced by the concern of Rev. Lovejoy. Marge realizes now that the party wasn’t taking off so she’s a little freer with pouring. But she’ll pay attention and cut back if the guests are getting inebriated. And Marge can cut back on ice and mixers if guests start bringing their own bottles and risk pouring too freely.

  5. Gravatar of Benjamin Cole Benjamin Cole
    29. July 2013 at 20:32

    I like Yellin, but the PR is terrible.

    Yellin looks like Sotomayor or Kagan, Obama’s Supreme Court picks.

    The public and the right-wing will again make the incorrect connection between liberals and easy money and thus market monetarism.

    Too simple? Exactly why was Senator Corker bashing Ben Bernanke for being “too easy?” Maybe because Bernanke is bearded, Ivy League intellectual and even Jewish?

    I hate to say it, but Market Monetarism needs a Fed chairman who looks resolute, conservative and talks a lot about free enterprise and economic growth and wears a flag pin in his lapel.

    Sumner could do it.

  6. Gravatar of ssumner ssumner
    30. July 2013 at 06:37

    Becky, I might have used the version by The Who.

    Gordon and Patrick, Good analogy.

    Ben, Robert Hetzel would work.

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