tag:blogger.com,1999:blog-8702840202604739302.post2082827504463286009..comments2024-03-28T03:38:53.734-07:00Comments on MacroMania: The most obvious source of cyclical asymmetry is not a nominal rigidityDavid Andolfattohttp://www.blogger.com/profile/12138572028306561024noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8702840202604739302.post-65093443344094106532014-01-15T23:04:37.697-08:002014-01-15T23:04:37.697-08:00Oh! your post is mind blowing. I like it. Thanks a...Oh! your post is mind blowing. I like it. Thanks a lot for your great sharing.<br /><br /><a href="www.anindakablotv.com" rel="nofollow">kablo tv</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-58634943298315272392013-12-30T07:28:54.612-08:002013-12-30T07:28:54.612-08:00yes, truly excellent post.yes, truly excellent post.Adam Phttps://www.blogger.com/profile/16316584837610367439noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-835899100364999672013-12-28T15:25:11.833-08:002013-12-28T15:25:11.833-08:00Yep. I want to put the two together somehow. And d...Yep. I want to put the two together somehow. And dump Calvo's fairy!Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-77684101943757099632013-12-28T15:00:22.991-08:002013-12-28T15:00:22.991-08:00Nick, the ratio of "buyers" to "sel...Nick, the ratio of "buyers" to "sellers" has a name in search theory: it is the market-tightness variable. As the ratio changes, one side will find it easier to match, the other side less so.<br /><br />In any case, don't get me wrong. I like the story you tell. I just don't think it's the only possible story. David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-54282156265612937032013-12-28T11:38:54.529-08:002013-12-28T11:38:54.529-08:00David: "Contraction in these activities leads...David: "Contraction in these activities leads to thinner markets, making it harder for buyers and sellers to match."<br /><br />That makes good theoretical sense, but I'm saying I don't think it fits the data. In a recession, sellers of money (buyers of labour and other goods) usually report it is easier to find a match. It is buyers of money (sellers of labour and other goods) who usually report it is harder to find a match. <br /><br />It's that asymmetry in ease of finding a match that us old Marshallian scissors guys describe as "excess supply".Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-2153313875940824132013-12-28T11:18:04.700-08:002013-12-28T11:18:04.700-08:00Not ruling that out, Nick. Just not sure it *neces...Not ruling that out, Nick. Just not sure it *necessarily* suggest a "monetary shock and sticky prices." <br /><br />For example, a "bad news shock" (lowers the expected after-tax return to investing in physical and human capital) would "look like" a negative AD shock. Now suppose some investment includes marketing, distribution, etc. Contraction in these activities leads to thinner markets, making it harder for buyers and sellers to match. Nothing "monetary" in this story. We have to sort out which of these (and other) competing interpretations make the most sense. I'm not ready to hang my hat on any one explanation. David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-10887632661522209772013-12-28T11:11:09.609-08:002013-12-28T11:11:09.609-08:00Thanks, Diego. Thanks, Diego. David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-54539940356454240222013-12-28T10:56:04.706-08:002013-12-28T10:56:04.706-08:00Good post.
But what is the shock? Why not a fall ...Good post.<br /><br />But what is the shock? Why not a fall in AD, plus sticky (non-spot) prices and wages? Why does it get easier for buyers to find sellers, and harder for sellers to find buyers, in a recession? Does that not suggest a monetary nature of the shock? Because it is easier to sell money and harder to buy money, in a recession.Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.comtag:blogger.com,1999:blog-8702840202604739302.post-30956725373865349992013-12-28T10:43:29.439-08:002013-12-28T10:43:29.439-08:00David,
The link to your paper links to the Jones o...David,<br />The link to your paper links to the Jones one instead. <br />Diegohttps://www.blogger.com/profile/18084671738464414141noreply@blogger.com