Friedman, Benjamin. Forthcoming. “A Century of Growth and Improvement.” American Economic Review.
Friedman, Benjamin. Forthcoming. “Economics and Its Discontents.” Schmollers Jahrbuch.
Friedman, Benjamin. Forthcoming. “Work and Consumption in an Era of Unbalanced Technological Advance.” Journal of Evolutionary Economics.
Friedman, Benjamin. 2015. “Has the Financial Crisis Permanently Changed the Practice of Monetary Policy? Has it Changed the Theory of Monetary Policy?.” The Manchester School, 83.
Friedman, Benjamin. 2015. “The Joys of Innovation: For Profit Only.” New York Review of Books, 62.
Friedman, Benjamin. 2015. “Monetary Policy since the 2007-9 Financial Crisis.” International Encyclopedia of the Social and Behavioral Sciences, 2nd ed. Vol. 15. Oxford: Elsevier, 15.
Friedman, Benjamin. 2015. “A Predictable Pathology.” BIS Papers 80 (January ).
Friedman, Benjamin. 2014. “Financial Stability and Responsive Monetary Policy: Resolving a Dynamic Incompatibility.” Monetary Policy, Sovereign Debt and Financial Stability: The New Trilemma, edited by Mohanty. New Delhi: Foundation Books.
Friedman, Benjamin. 2014. “One Job, Four Careers.” Eminent Economists II- Their Life and Work Philosophies, edited by Szenberg and Ramrattan. Cambridge: Cambridge University Press.
Friedman, Benjamin. 2014. “Is Our Economy's Financial Sector Worth What it Costs Us?.” The Role of Central Banks in Financial Stability: How Has It Changed?, edited by Evanoff et al.. Hackensack: World Scientific.
Friedman, Benjamin. 2014. “The Pathology of Europe's Debt.” New York Review of Books, LXI.
Friedman, Benjamin. 2014. “The Perils of Returning a Central Bank Balance Sheet to 'Normal'.” Financial Times.
Friedman, Benjamin. 2014. “What's in a Name? Everything..” The Atlantic.
Friedman, Benjamin. 2013. “Brave New Capitalists' Paradise': The Jobs?.” New York Review of Books, LX.
Friedman, Benjamin. 2013. “How Americans Face Risk.” The New Republic.
Friedman, Benjamin. 2013. “The Simple Analytics of Monetary Policy: A Post-Crisis Approach.” Journal of Economic Education 44 (October-December).
Friedman, Benjamin. 2013. “Toward a New Understanding of Monetary Policy.” Monetary Authority of Signapore, Macroeconomic Review 12 (October).
Friedman, Benjamin M. 2013. “The Simple Analytics of Monetary Policy: A Post-Crisis Approach.” AEA Committee on Economic Education at AEA meetings January 2013. San Diego, CA.Abstract
The standard workhorse models of monetary policy now commonly in use, both for teaching macroeconomics to students and for supporting policymaking within many central banks, are incapable of incorporating the most widely accepted accounts of how the 2007-9 financial crisis occurred and incapable too of analyzing the actions that monetary policymakers took in response to it. They also offer no point of entry for the frontier research that many economists have subsequently undertaken, especially research revolving around frictions in financial intermediation. This paper suggests a simple model that bridges this gap by distinguishing the interest rate that the central bank sets from the interest rate that matters for the spending decisions of households and firms. One version of this model adds to the canonical “new Keynesian” model a fourth equation representing the spread between these two interest rates. An alternate version replaces this reduced-form expression for the spread with explicit supply and demand equations for privately issued credit obligations. The discussion illustrates the use of both versions of the model for analyzing the kind of breakdown in financial intermediation that triggered the 2007-9 crisis, as well as “unconventional” central bank actions like large-scale asset purchases and forward guidance on the policy interest rate.
Download paper
Is Our Economy's Financial Sector Worth What It Costs Us?
Friedman, Benjamin M. 2013. “Is Our Economy's Financial Sector Worth What It Costs Us?.” The Role of Central Banks in Financial Stability: How Has It Changed?, edited by Douglas Evanoff, Cornelia Holthausen, George Kaufmann, and Manfred Kremer. Hackensack: World Scientific.
Friedman, Benjamin M. 2012. “The Oligarchy in America Today.” New York Review of Books, LIX. Review of "Who Stole the American Dream" by Hedrick Smith
Published October 11, 2012