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

TPP, Fast track, secret to you

Sorry for such thin postings lately but life happens. Hat tip to stormy for this reminder of a trade agreement not making the news. Use TPP in search to see other postings from Kenneth Thomas and Dan Becker: Via Truthout comes this item So far, the TPP has been drafted with an unprecedented degree of […]

William Dudley on the economic outlook… An “Effective” response

William Dudley is the President and CEO of the Federal Reserve Bank of New York. He gave a speech about the economic outlook. The speech is standard talk about economic improvement that is not good enough yet. He states that demand is a constraint on the economy. “Turning first to consumer spending, such spending has […]

Barry Ritholz responds to one narrative of the 2007 financial collapse

Barry Ritholz writes in his column in the Washington Post: To many people, the 2008-09 financial crisis was a complex, fast- moving news story and an anagram-laden, horrifying collapse. Such events often give rise to false histories, myths and ideologically driven narratives. It is vitally important that we understand what really happened. Let’s put to rest some […]

Has hourly self-employment income stayed relatively constant to hourly payroll income?

The Brookings Institute has just come out with a new paper seeking to explain the decline in labor’s share of national income. The paper is titled, The Decline of the U.S. Labor Share. It was written by Michael W. L. Elsby, Bart Hobijn, and Ayşegül Şahin. Here is a video of Justin Wolfers explaining the […]

For the Record, No: A Review Too Late

Were Lawrence Summers what his critics say he is—a political hack with an inflated sense of his own skills that is matched only by his sense of entitlement, accompanied by a grotesquely non-realistic view of his accomplishments—this is precisely the letter he would write. Felix, who was The Voice of Reason on this  before and […]

Nick Rowe explores interest rates & aggregate demand… What about profit rates, optimism & effective demand?

Nick Rowe at Worthwhile Canadian Initiative asks a question… “What happened in 2008? Why didn’t the cut in interest rates prevent Aggregate Demand from falling? Was it just that the cut in interest rates wasn’t big enough? Or is the rate of interest the wrong thing to look at? Because it’s only a relative price, […]

Deadweight Loss Re-defined

Via Vox come these thoughts on the interface between the language of economists and general media and audience. Deadweight Loss Re-defined Economists usually think of taxation as inefficient. This column argues that the anti-tax rhetoric evident in much lay discussion of public policy draws considerable support from the prevalent negative language of professional economic discourse. […]

Fed, please taper, I beg you…

The transmission mechanisms that distribute liquidity to consumer demand labor are broken. More QE just feeds the supply-side of the economy making it more and more top-heavy. There is evidence of a bubble forming from Tim Duy. The Fed is making the economy more and more unstable as time goes by. The imbalance between capital […]