Yes, demand is high for safe assets and this is in part driving down interest rates. Labor share is the key to solving the issue. Briefly… Labor share is fallen in the US and other advanced countries, including China. Inequality of income has widened. The excess money at the top is driving the demand for […]
I’ve got a new post up at a new site, Evonomics Magazine (“The next evolution of economics”). It’s an impressive offshoot with some great articles, assembled by folks involved with The Evolution Institute, which I’m a big booster for. My readers here will find much familiar in the post, but I’m happy with how it […]
Marco Rubio spoke today to a large group of Iowa Republican activists and urged them to “turn the page on outdated leaders of both parties“. They agreed to do that, and started chanting “Feel the Bern.” — Senator, You’re No John Kennedy. You’re Just Clumsily Appropriating a Campaign Line of His [from his 1946 run […]
An article came out today by Ricardo Caballero, Emmanuel Farhi and Pierre-Olivier Gourinchas, called On the global ZLB economy, where they talk about how a liquidity trap scenario can spread globally.They see a high demand for safe assets over their supply. “The growing global shortage of safe assets imparted a strong downward secular trend to […]
We hear that aggregate demand must be increased. Just today in a great article giving 3 mismatches that should be fixed in the global economy we read… “First, aggregate demand is deficient relative to aggregate supply.” – (Restarting the global economy: Three mismatches that need concerted public action, Michael Spence, Danny Leipziger, James Manyika, Ravi […]
Blogger Phil Ebersole, who is a retired journalist, picked up and commented favorably on my Oct. 17 post refuting refuting Clinton’s statement during the Oct. 13 debate that the 2005 federal statute known as the Protection of Lawful Commerce in Arms Act (the PLCAA), which Sanders voted for and Clinton voted against, “give[s] immunity to the […]
Brad DeLong is great as an educator and a thinker. I bet that even he struggles to understand economics fully. We all have to develop theories to progress the field of economics. Brad DeLong has a post where he cites a long text from Keynes about rates of interest and effective demand. Now, I am […]
The greatest goal of economics is to maximize net social benefits. Just imagine how great the United States is. We have great resources in terms of human and capital. Then look at how poorly the economy is performing for society. Obviously, something is wrong, terribly wrong with the economy. What can the Fed do? Can […]
“Always click the link” — Kevin Drum In his latest Op-ed Paul Krugman wrote ” Americans overwhelmingly believe that the wealthy pay less than their fair share of taxes, and even Republicans are closely divided on the issue.” I would have guessed that a majority of rank and file Republicans agree with all Republican presidential […]