Yesterday, I noted that an expectations un-augmented Phillips curve fits data from the past two decades rather well. Here is an even simpler illustration of the point that lagged price inflation has not correlated with wage inflation for the past two decades. The figure is a scatter of lgwinfl — the percent annual rate of […]
Yesterday I wrote that causing a recession to correct policy mistakes would reflect the medical wisdom of re-breaking a bone in order to set it correctly. Yes, there is pain in re-breaking a bone. Yes, the patient screams. But the patient is better off in the long-run. I said people would think I was […]
The quotes in this post’s subject line are very much intended as a double entendre. I’m of course referring to the title of Piketty’s book (which I’ve read about 80% of, jumping around). But even more, I’m talking about his definition of “capital.” I’ve ranted frequently about economists’ failure to define this term or agree on […]
If the president is to be taken seriously, it’s time for him to make campaign finance a centerpiece of the upcoming campaign. Despite appearances, serious reform remains possible within the new limits set out by the Roberts court. Obama should take full advantage of the chief justice’s explicit recognition that the “appearance of corruption” serves […]
Pretty good company to be in! Friday round-up The Court’s decision on Wednesday in McCutcheon v. FEC, striking down the aggregate limits on contributions to political parties, political action committees, and candidates for federal office, continues to dominate coverage of, and commentary on, the Court. Yesterday this blog kicked off its symposium on the decision […]
Seth Klarman’s work is to take money from clients and invest it. Yet, he made news recently by returning some $4 billion back to his clients. He did not want to invest their money. Why would he do such a thing when it is his job to invest money? He says the market is not […]
In a recent post, I mentioned a blog post by Nate Silver which I hadn’t managed to google. It is here Models Based on ‘Fundamentals’ Have Failed at Predicting Presidential Elections I think this is a serious effort worthy of publication in a top political science journal (not that anyone asked me). Silver attempted to […]
When [U.S. Solicitor General Donald] Verrilli said the Court has never found a right to exercise religion for corporations, Alito wondered if there was something wrong with the corporate form that it would not be accorded religion freedom rights. Did Verrilli agree, Alito said, with a lower court’s view that the only reason for a […]
Mark Thoma is absolutely correct when he writes… “The wealthy think it’s the same — in their minds they are the job creators, what’s good for the wealthy is good for America! — but it’s not.” This is where I have to ask the question… So if loose monetary policy is good for the wealthy, […]
by Joseph Joyce (is a Professor of Economics at Wellesley College and the Faculty Director of the Madeleine Korbel Albright Institute for Global Affairs) Too Much of a Good Thing? Global banks do not have much to cheer about these days. Earnings are falling, and the banks are responding by cutting jobs. The Federal Deposit Insurance Corporation has […]