by Joseph P. Joyce (is a Professor of Economics at Wellesley College and the Faculty Director of the Madeleine Korbel Albright Institute for Global Affairs ) Desperate Times, Desperate Measures The selloff of emerging market currencies and equities continued last week. A Bank of America report noted that investors withdrew $6.4 billion last week from emerging market stock funds, while bond investors […]
The stock market is going down and some say it is a correction, and that stocks will be back up in spring. Well, not so fast. There are concerns that the economy is genuinely slowing down. Here is a tweet from Edward Harrison… Lower equities, lower oil, lower copper, lower bond yields, flattening yield curve […]
The Agenda Project (which is behind Patriotic Millionaires, Top Wonks, and other progressive initiatives) is preparing an open letter supporting an increase in the minimum wage. They’re looking for more signatories. SMART CAPITALISTS FOR AMERICAN PROSPERITY Dear Mr. President and Honorable Members of the U.S. Senate and House of Representatives, We are writing to ask you […]
Stocks were up a bit in the morning and when I just check now, wow, they have gone down quite a bit. Remember my post from a few weeks ago… Fun analogy for investing in stocks. I was giving warning.
There was an insightful article by Nelson Schwartz in the New York Times on how the hollowing out of the middle class is affecting business. He brought up some great points… “The post-recession reality is that the customer base for businesses that appeal to the middle class is shrinking as the top tier pulls even […]
A while back I built a model to look at the long-term economic effects of upward and downward redistribution. Posts here and here. Commenter JGF pointed out an error in the model. I’ve revised and corrected it. The spreadsheet’s here. The model is based on marginal propensities to spend out of wealth and income. Poor people […]
My last Angry Bear post generated such a wonderfully amusing comment stream that I couldn’t resist posting a follow up. One of the criticisms was that I didn’t consider Real GDP per Capita. At the risk of having anyone think I accept homework assignments from trolls, here is a look at that very thing. I’m […]
by Joseph P. Joyce (is a Professor of Economics at Wellesley College and the Faculty Director of the Madeleine Korbel Albright Institute for Global Affairs ) Guest post: Shake, Rattle and Roll The selloff last week of the currencies of many emerging market countries while stock prices also declined can be seen as the result of “known unknowns” and “unknown unknowns.” How […]
I started blogging last March. Since then, one of my most visited posts presented a model to show the progressive death of the Fed rate. Basically, the effective zone of the Fed rate is being pushed lower and lower as effective demand declines due to the decline in labor share. In the following graph, I […]
The Republican response to the President’s State of the Union message was delivered by Washington State Rep. Cathy McMorris Rodgers. It was personal, platitude-ridden, overtly religious, twee, and devoid of policy content or anything else of relevant substance – other than a naked assertion that BHO’s policies are making life harder in myriad unspecified ways. […]