A hypothesis for Prof. Krugman: the transmission method was FEAR In his recent column disagreeing with Ben Bernanke, Paul Krugman asks for an explanation as to how a financial panic could lead to years thereafter of a slow recovery. Specifically, Krugman says that he “really really wants to hear about the transmission mechanism.” After all, […]
Housing: a big miss in permits with important ramifications NOTE: I’ll have a more comprehensive report up at Seeking Alpha later, and will link to it once it is posted. Despite a smart month over month increase in starts, this morning’s report on housing permits and starts, taken as a whole, was a sharp negative. […]
A detailed look at Industrial Production during this expansion In the past week there’s been a little highbrow relitigation of the drivers of the “Great Recession” between Paul Krugman and Ben Bernanke. Bernanke plumps for it having been a “credit event” — and as to the crisis of 2008, he is clearly correct — while Krugman says it was […]
I had written this in 2009 and it also appeared in “the new agenda.” It is a decent piece about people who saw the coming crisis pre-2007/8 and those who opposed them. Recently, Stanford Magazine did an article on one of the University’s former law review presidents who graduated at the top of the 1964 […]
The Minsky Moment Ten Years After These days are the tenth anniversary of the biggest Minsky Moment since the Great Depression. While when it happened, most commentators mentioned Minsky and many even called it a “Minsky Moment,” most of the commentary now does not use that term and much does not even mention Minsky, much […]
Trump Wants to Lower Drug Prices I just now got around to reading some May 11 speech by Donald Trump who says he wants to reign in the high price of drugs. A laudable goal and Trump said some things that got applause. But ahem – he may no clue especially when he says things like this: […]
Weekly Indicators for September 10 -14 at Seeking Alpha – by New Deal democratMy Weekly Indicators post is up at Seeking Alpha. An anomalous surge in demand deposits led to one of the 5 biggest weekly jumps in M1 money supply ever as reported by the Federal Reserve this week. By clicking on the link and reading, […]
Paul Krugman put many of his thoughts together here “What Do We Actually Know About the Economy? (Wonkish)” Basically he concludes that some economists are confused but Paul Krugman knows a lot (no one has ever accused him of being diplomatic). Of course I agree with him. However, I am very pleased to note that […]
Mainstream Economics become the celebration of the wealthy rentier class To paraphrase Mark Twain, everyone complains about inequality, but nobody does anything about it. What they do is to use “inequality” as a takeoff point to project their own views on how to make society more prosperous and at the same time more equal. These […]
Go, Secretary Mnuchin! Save The Iranian Banks! In the Sept. 14 Washington Post, Josh Rogin is all shocked and upset about a report that people in the US Treasury Department, apparently supported by, if not outright led by, Secretary Steve Mnuchin, have been stonewalling or slow-moving a memo that was ordered up by President Trump […]