The HEROES act passed by House Democrats did not include a formula that would keep expanded unemployment insurance benefits in place until the economy has recovered. The always thoughtful Ezra Klein is very critical of this omission. His argument can be boiled down to two points: If Biden wins the presidency, Republicans will predictably try […]
Lawrence Summers discovers bargaining power Mainline macroeconomics pretends to be “value neutral,” by which practitioners mean that they assign no moral value to the supply or demand curves to the participants in the economy: they simply exist. The question of *why* participants in the economy have particular supply and demand curves is simply not even […]
Conspiracy Theories: How to Pick Out the Plausible Ones This is an age of rampant conspiratorialism. Bill Gates is behind the pandemic because he wants to shoot you full of vaccines. No wait, it’s all those 5G cell towers. Or maybe it’s bioterrorism from China. Or just a hoax perpetrated by international capital to undermine […]
I have been monitoring the close relationship between bond yields and monetary velocity ( personal income/zero maturity money) for years without coming to strong conclusion about what to make of it. In particular, it displays the long term secular rise and fall of bond yields before and after 1980.. I do not know of […]
“Dr. Doom” At It Again: Predicts 10-Year Depression That would be Nouriel Roubini of NYU who got his moniker back during the Great Recession, which he called pretty well in 2006. He did this clearly yesterday in an interview in The Intelligencer, although he has been pushing something like this for some time now, bringing […]
A Compromise on Liability So Mitch McConnell and the senate Republicans want blanket employer liability protection as the price of another round of economic support. They have this leverage because Democrats kept postponing their agenda until they were the only ones with a list of things they wanted to spend money on. (This illustrates classic bargaining theory […]
Woke Is Reactionary: The Small Business Lending Edition We live in a drastically unequal society. Everywhere you look you will find injustice, constraint and exploitation. Being a member of a racial or other minority increases the odds you will end up on the short end, so what should we do about it? There’s a progressive […]
(Dan here…NDd’s post points to more than the impact of the US catching up in testing only recently, but also points to beginning answers readers have asked in comments about what the statistics show regarding re-opening and where we might be failing to report. ) Coronavirus dashboard: emphasis on testing I want to focus this […]
RIP Oliver Williamson Oliver Williamson died yesterday at age 87, I do not know of what. He was famous as the main developer of New Institutional Economics, following the influence of Ronald Coase, which emphasizes the role of transactions costs in the formation and development of economic (and some other) institutions. He received the Nobel […]
Bad news and good news on coronavirus; plus, implications for Election Day No economic news today as we head into the Memorial Day weekend, but there are a few coronavirus and economic/political developments of note. First, the bad news: the declining trend in new diagnosed cases of coronavirus in the US has stopped in the […]