This is pure speculation (also called theory). I have no respect for economic theory definitely including my own efforts, so the post will all be after the jump. I will write about, sketch and definitely not write out a model in which Fed purchases of 7 year Treasury notes causes low investment. It happens to […]

I am not able to get anyone to debate me on monetary policy in a liquidity trap. Therefore I resort to crude provocation. I recall two claims about monetary policy which were not controversial until this year. First that the effects of a shift in monetary policy peak after roughly 6 months. Second that it […]

Various congressional representatives held town hall meetings recently, and the news channels and print media were abuzz with the lively give-and-take, including shouting matches. See, e.g., House G.O.P. Members Face Voter Anger Over Budget, New York Times, Apr. 26, 2011; Republicans facing tough questions over Medicare overhaul in Budget Plan, Washington Post, Apr. 22, 2011. […]

Hoocoodanode that replacing someone described as “too Professorial” with someone whose concept of True Patriot Love was to spend the time of the Life of Legendary Jesus out of the country (being a Torture Apologist from the comfort of Cambridge, Mass while Maher Arar traveled different roads) and then act upon his return as if […]

by Beverly Mann The Fine Print It’s hardly a secret that Chamber of Commerce types have co-opted a bare majority of the Supreme Court as their proxy in their war against business litigation, and that the most potent categorical weapons are arbitration as a forced substitute for lawsuits and the effective elimination of class actions. […]

Spent the morning at this event: presentations and discussion by Joe Stiglitz, Yves Smith, Mike Konczal, Joe Gagnon, Matt Yglesias, Tom Palley, and many others. Mike K. tole me he expects that video will be available this evening, at least of the speakers’s presentations. I plan to post at more length later; meanwhile, you can […]

by Mike Kimel Where Has the Spending Gone, Joe Dimaggio? Lately there’s been a gnashing of the teeth about the deficit and the debt and what to do about it. Democrats point out that when GW took office, there was no deficit, and that a big part of the problem is that federal tax revenues […]

A lot of trading in the Fixed Income (and especially FX) market is done for “liquidity” purposes. There is often an underlying goal involved (e.g., push prices higher with small lots, sell large ones at the elevated prices) and frequently such strategies are discussed as “algorithmic trading.” (Example: the algorithm estimates that you will need […]

Guest post by Steve Roth Oh Yeah: Crowding Out Has Been a Huge Problem Cross-posted at Asymptosissize=”2″> Right-wing economists love to claim that government spending “crowds out” private spending, especially investment spending on fixed assets. It’s probably true at some level and in some situations. But if it was true for postwar America, you’d expect […]