I’m happy that Scott Sumner commented. I think his analysis is reasonable, and I roughly agree with what he said. My only major complaint is that I think he might have misread the extent to which my article was intended as a criticism of his policy recommendations as opposed to Eliezer’s specific commentary. I think it’s plausible that the new monetary policy had a modest but positive counterfactual impact on RGDP over several years. I just don’t think that’s the impression Eliezer gave in the book when he provided the example.
I’m happy that Scott Sumner commented. I think his analysis is reasonable, and I roughly agree with what he said. My only major complaint is that I think he might have misread the extent to which my article was intended as a criticism of his policy recommendations as opposed to Eliezer’s specific commentary. I think it’s plausible that the new monetary policy had a modest but positive counterfactual impact on RGDP over several years. I just don’t think that’s the impression Eliezer gave in the book when he provided the example.