by John H. Cochrane via Grumpy Economist
By "fiscal theory of monetary policy" I mean a model with standard DSGE ingredients, including inertemporal optimization and market clearing, monetary policy described by interest rate targets, price or other frictions, but closed by fiscal theory, "active" fiscal policy rather than "active" monetary policy
Allison Schrager, E21
The investment objective of a public pension fund manager is a simple one: provide the promised pension benefits while exposing the fund (and the taxpayer who is the backstop) to as little risk as possible. But in a world of stakeholder capitalism this has all gotten a little more complicated. An Australian man recently sued his pension fund for investing in non-green companies. Last week, Bruce Katz of Drexel and Colin Higgins of the Governance Project wrote that public pension funds should invest locally to boost local economies. They argue that there is a lack of transparency that leads funds to invest in private assets in America’s coastal cities even though there is arguably an ever-greater responsibility to invest in worthy local projects. Read more here....