I’ll just note that the NGDP growth from 2013 to 2017 (when Inadequate Equilibria was published) was about 2% per year whereas RGDP went up by about 1% per year. This definitely makes me sympathetic to “they didn’t go far enough” but I’m still not sympathetic to “they never tested my theory” since you’d still expect some noticeable large effects from the new policy if the old monetary policy was responsible for a multi-trillion real-dollar problem.
Trillions of dollars in lost economic growth just seems like hyperbole. There’s some lost growth from stickiness and unemployment but of course the costs aren’t trillions of dollars.
They did in fact not go far enough. Japanese GNI per capita growth from 2013 to 2021 was 1.02%. The prescription would be something like 4%.
I’ll just note that the NGDP growth from 2013 to 2017 (when Inadequate Equilibria was published) was about 2% per year whereas RGDP went up by about 1% per year. This definitely makes me sympathetic to “they didn’t go far enough” but I’m still not sympathetic to “they never tested my theory” since you’d still expect some noticeable large effects from the new policy if the old monetary policy was responsible for a multi-trillion real-dollar problem.
Trillions of dollars in lost economic growth just seems like hyperbole. There’s some lost growth from stickiness and unemployment but of course the costs aren’t trillions of dollars.