Usually, I would leave this type of post to the Steves, Jazz, Ken, Roberts, Edwards, Mikes, Thomas, etc. of Angry Bear Blog and stick to my manufacturing expertise to which flow the big bucks for me; but, this is in laymen’s terms and it makes sense to me at least.  Arend Brett’s latest article on […]

James Kwak at Baseline Scenario writes about wealth inequality and supports systematic redistribution. And our own Steve Roth wrote on this too here at Angry Bear. What is the propensity to consume by capital income? Well, for every dollar of capital income, roughly 18% is being spent on consumption. (15% effective tax rate, 67% savings […]

by Joseph Joyce Riding the Waves   The volatility in emerging markets has abated a bit, but may resume in the fallout of the Russian takeover of the Crimea. The capital outflows and currency depreciations experienced in some emerging market nations have been attributed to their choice of policies. But their economic situations reflect the domestic […]

I’m surprised that nobody highlights what for me is the key takeaway from that report. They predict, with a $10.10/indexed increase: Low-end incomes increase $19 billion. High-end incomes decline $17 billion. For a net GDI increase of $2 billion. Table 1, page 2: Pie gets bigger, all that rot. The increase is presumably explained by […]

The normal Taylor rule takes into account the difference between inflation and a target inflation, and output and a targeted potential output. I will take a modified version of the Taylor rule and apply it to both capital output and labor output. First, capital output… Simulated nominal interest rate of capital = N + p […]

A simple rule of economic arithmetic that economists seem to studiously ignore: Inflation transfers real buying power from creditors to debtors, with nary an account transfer visible anywhere on anyone’s account books. Inflation means that debtors pay off their loans over time with less-valuable dollars — dollars that can’t buy as much bread, butter, and […]

Thomas Piketty’s important new book, Capital in the Twenty-First Century, predicts a bleak future of increasing concentrations of financial assets in few hands, stagnant wages and labor share of income, and declining returns to capital — secular stagnation. He enunciates and demonstrates the part of Marx that Marx got exactly right. But Dean Baker points out where […]

I would like to ask a question of the readers for their comments. Has aggressive monetary policy made labor less valuable? The idea is that cheap money for so long to investors has made profits easier to obtain, and that labor was not valued and rewarded as a means to produce profits. Therefore, wages held […]

Lifted from comments to Calculated Risks aside on cash for clunkers.  Spencer says: I get so tired of seeing people evaluate the cash of clunkers and ignoring the impact on auto inventories. During the cash for clunkers auto and light truck inventories fell from 2.7 months of sales to1.6 months of sales — the norm […]

With the release of the Fed’s Open Market Committee Meeting minutes from 2008, it has been confirmed that the Fed was too concerned about inflation, and, to quote Marcus Nunes, “worse, the headline kind” leading into the 2008 crash.  The Market Monatarists cite this as evidence that the Fed was responsible for turning a potentially […]