I know half of you (two thirds? three quarters?) probably think I'm making too much of this, but I am still frustrated by this "congratulations to Scott Sumner" meme.
First, let's be clear - this is not an NGDP level target, which maybe could be counted as a win for Scott Sumner as an individual. It's just a smarter monetary expansion that ought to act more positively on expectations because there's no fear that the rug will be pulled out from under us if the economy improves.
So here's the question: What prominent economists haven't been calling for more Fed expansion? Maybe John Taylor? I thought he had said something about policy being just right which is sort of the same as not pushing for more expansion. John Cochrane is not a fan.
It seems to me the list of prominent economists who have been saying this is massive.
Maybe it's a victory for the blogosphere as a whole, but I think Evans and Woodford probably have more to do with it and they're not in the blogosphere. And ultimately what is being said in the blogosphere has been said in the literature a lot longer.
A methodological individualist mistake
6 hours ago