My latest macro musings podcast is with Brad DeLong. Brad is a professor of economics at the University of California at Berkeley, a research associate of the National Bureau of Economic Research, and a former deputy assistant secretary of the U.S. Treasury under President Bill Clinton. Brad’s work ranges from business cycle dynamics to political economy to economic history. He has published widely in these fields and is one of the pioneers in the economic blogosphere.
Brad and I sat down to discuss a number of interesting topics. We started with his new book that he coauthored with Stephen Cohen titled “Concrete Economics: the Hamilton Approach to Economic Growth and Policy”. Among other things, we talked about the books pragmatic policy prescriptions outlined in the book and what they mean for today. The book also provided a good historical context for a discussion on whether the the current wave of populism and nativism is truly new.
We also discussed the transformation of macroeconomics as outlined in his 2000 Journal of Economic Perspectives titled “The Triumph of Monetarism?” This article argued much of New Keynesian macroeconomics was largely a micro-founded reformulation of Milton Friedman's macroeconomics. We discussed how this understanding has changed over the past sixteen years.
Finally, we consider why policymakers failed to fully restore nominal demand after the Great Recession. Brad notes that it was widely understood that this was what macroeconomic policy was supposed to do, it was standard operation procedure. That it did not happen after 2009 remains something of a puzzle. It was a fun conversation throughout.
You can listen to the podcast via iTunes, Sound Cloud, Stitcher, or your favorite pocast app. You can also listen through the embedded player above. And remember to subscribe since more guests are coming!
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