Andy Haldane is worth following.
Andrew Haldane is the Bank of England’s Executive Director for Financial Stability. I recently talked to him about the crisis of contemporary economics and the way forward.
You are vocal critic of mainstream macro economics. How does this square with the tradition of central banks who historically have been very conservative institutions.
I don’t know if what you say about conservatism in central banks is actually true. I can see why people say that central bankers want to have ideas tested in a laboratory before they bring them to the world. In recent history, many ideas first bubbled up in academia and then eventually migrated into the policy sphere. Monetarism is one example for this, and the whole notion of adhering to policy rules grew out of academic literature. But during my time here there have been a number of examples where the causality has been reversed. In the current…
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