1. I have a new policy brief at the Mercatus Center that makes the case for a Nominal GDP level target from the knowledge problem perspective. It is a non-technical paper meant to be accessible by policy makers and lay people. It echoes some of the more technical arguments made in this paper by Josh Hendrickson and myself.
2. George Selgin testified this week before the House Financial Services Committee as part of the hearing Monetary Policy v. Fiscal Policy: Risks to Price Stability and the Economy. His testimony is a tour de force through the issue of interest on excess reserves.
3. Scott Sumner pushes back against all the macro moralists waving their finger at Germany for running current account surpluses. He argues it is mistaken to blame Germany's current account surplus for dragging down global demand growth.
4. Is any part of potential GDP endogenous to the level of aggregate nominal demand? This is a question we have looked at before on this blog. A new paper reexamines this issue and concludes the answer is yes. Below are the key figures from the paper. The first one shows the standard CBO potential GDP estimates over time against a new estimate. Matthew Klein reports on the paper.