tag:blogger.com,1999:blog-6837159629100463303.post3347748106825837877..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Echoes of the financial crisisJason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6837159629100463303.post-42067234623278619012014-12-19T03:47:00.769-08:002014-12-19T03:47:00.769-08:00Thanks for the link, Ben. As I read Cochrane's...Thanks for the link, Ben. As I read Cochrane's argument it basically says currency is small compared to NGDP and everyone uses electronic money.<br /><br />However, in the information transfer model what is important is that it defines the "unit of account" ... That's why it defines the price level and NGDP (or maybe, NGDP and currency define each other).<br /><br />But there really is no data based argument in Cochrane's case. The amount of material that defined the kilogram model was minuscule compared to all the kilograms of material out there!Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-7908496350956043202014-12-18T21:35:25.724-08:002014-12-18T21:35:25.724-08:00Hey Jason, have you seen this JKH post talking abo...Hey Jason, have you seen this JKH post talking about the seciton of the John Cochrane paper where he suggests that the currency component of the moetary base is irrelevant?<br /><br />http://monetaryrealism.com/monetarism/<br /><br />I thought it would interest you because it is exactly the opposite of your empirical finding for the best fit using ITMAnonymoushttps://www.blogger.com/profile/14371866512374927783noreply@blogger.com