I have been working (in my head) on a wonkish, fully cited, post on the fundamental fallacy embedded at the basis of neo-classical econ. But I am still engaged on reading the ur-texts (hint Karl Polanyi and a revisit to E.P. Thompson) so instead will just throw out my thesis and let the thoughtful critics […]

My previous post talked about how profits peaked 12 months ago coinciding with the economy hitting the effective demand limit. The idea is that profit margins will peak at the effective demand limit. Keynes stated this… “Thus the volume of employment is given by the point of intersection between the aggregate demand function and the […]

This was in my email box this morning, and I thought I’d pass it along: http://portuguesewaterdog.rescueme.org/California

By way of a video from Boom Bust (the best show for economics news), Barclays says that the 60 basis point drop in corporate profit margins in the S&P500 over the last 12 months is a sign that we are heading toward a recession. (see 22:30 minute point of video.) The Barclays’ message coincides exactly […]

One hears that the Federal Reserve would like to normalize the Fed rate. What does that mean? How can we conceptualize that? Well, there are many ways to conceptualize it, but here is a simple way using measures of the growth of nominal GDP (NGDP). In normalization, the Fed rate will rise to the growth […]

I think it is best to just click and read this. In a study published this year in Nature Neuroscience, several co-authors and I found that family income is significantly correlated with children’s brain size — specifically, the surface area of the cerebral cortex, which is the outer layer of the brain that does most […]

Janet Yellen gave a speach which has received a lot of attention and not just because she is one of the most powerful people in the world. I agree with Lorcan Roche Kelly that the best parts are footnotes 28 and 26. I got into a twitter debate with Andy Harless who was unconvinced by […]