Relevant and even prescient commentary on news, politics and the economy.

Why Is Germany Increasing Defence Spending ?

Recently, we have learned that the Russian military is vastly less capable than anyone imagined. Also, in three whole weeks, Ukrainians have markedly reduced the capabilities of the Russian military. Therefore, naturally many governments (including the German government) have decided they must spend more on their militaries to face the Russian threat. This makes no […]

US Real Wage Growth During the Pandemic

Real Wages Grew During Two Years of COVID-19 After Controlling for Workforce Composition Sean Howard, Robert Rich and Joseph Tracy February 15, 2022 I propose you just read it. They are quite convincing. The bottom line is that real wages increased last year (the top line is nominal wages and yes I like to take […]

contra MMT Anopinion III

Noah Smith (and many others) is irritated by a puff piece about Stephanie Kelton and modern monetery theory MMT by Jeanna Smialak in the New York Times. I am not interested in Smialak’s article. I think that Noah sums up his critique here very well “The article then demonstrates that it has little notion of […]

Against the Stability and Growth Pact

The stability and growth pact regulated the fiscal policy of Euro bloc countries. It is currently suspended, because of Covid. There is an ongoing discussion of whether to reactivate it when the epidemic ends or whether to replace it with something else. I strongly advocate eliminating it and replacing it with nothing. Very very rounghly, […]

An Opinion II

This is my second comment on Noah Smith’s substack. Today he wrote about something I should know about — macroeconomics. As always, I am amazed by Noah’s knowledge (it is his former former field of academic research). I don’t know for sure if his article is available only for subscribers, so I will try to […]