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

Is there an inflation blowback coming from China?

James Rickards wrote the book Currency Wars a few years back. (source video) He is supported by the Charles Koch Institute. He says the US wanted China to appreciate their currency, so that the dollar would depreciate, because the fed wanted to import inflation in order to meet their nominal GDP targets. His view is […]

Subsidies and the 4th District Of Iowa (Rep. Steve King) Summary Information

4th District and the shutdown, this article describes the predominant sentiment in the 4th district, and certainly Rep. King’s loudly proclaimed views, on the “shutdown” and even “default” as being not so bad. Mr. King gets a solid vote from its voters. From this site comes information on the 4th district. I did look for […]

Do lower wages REALLY increase the natural level of output? Aren’t they missing something?

One thing that is seen sometimes is a strange teaching in economics and business. The teaching says that lower costs of production will increase the natural level of real GDP output. Now the natural level of real GDP output is considered the limit at which the economy can produce. It is seen as the total […]

Chris Hayes, Why don’t you have me on as a guest?

On October 2, 2013 Chris Hayes had on Larry Kudlow to discuss the economics of the government shut down.  All I can say is, I could not believe he was the one Chris went to for insight.  Maybe he had to because, you know, Kudlow is related to him via the network they work at.  But really, […]

Does targeting low inflation cause higher unemployment?

Does targeting low inflation lead to higher unemployment? In other words, is it possible that a higher natural rate of unemployment is necessary to maintain a lower rate of inflation? Output and prices move together to maintain economic momentum. Normally output increases in response to demands in the market, which keeps prices stable. Yet, at […]

The Inflation game (part 2 and wonkish)

Whereas David Romer will say that the low inflation rate is a result of the zero lower bound. I would say that BOTH the low inflation rate and the zero lower bound result from the weak consumer liqudity due to very low labor share. In the previous post, I wrote about how inflation is a […]