Here, emphasis mine: It must affect your thinking somehow that they really believe in markets. I think that maybe he has a cognitive dissonance. His research shows that markets are not efficient. So what do you do if you are living in the University of Chicago? It’s like being a Catholic priest and then discovering […]
In a post titled Potential Misunderstandings, Paul Krugman makes a really good point about potential GDP… many people do not understand what it is. He is absolutely right to say that it is a supply-side concept. Yet, in order to know where your potential output is, one must consider demand potential. I use effective demand […]
Below the fold is information on the job creators.
by Dale Coberly FLYING SAUCERS, THE YOUNG, and SOCIAL SECURITY What if the Social Security Trust Fund WAS Worthless IOU’s George Bush liked to tell us “the young” were more likely to believe in flying saucers than they were to believe they would ever see any benefits from Social Security. First, let me assure you […]
We hear economists calling for higher inflation to lower the burden of debt on borrowers. Yet, we hear them complain about slow real GDP growth too. (secular stagnation) Can we have our cake and eat it too? Can we get real GDP growth alongside inflation? Real GDP rose by 3.6% on an annual basis for […]
Paul Krugman is honest in his search to explain secular stagnation, but he is missing a crucial piece to the puzzle. And thus he comes to an incomplete conclusion. But then we see that Noah Smith is bringing the missing piece to the table. (update: Noah Smith cites the work of Michael Elsby, University of […]
Sadly, not in the real world. But in the econoblogosphere. Much of that is arguably thanks to the newly launched Washington Center for Equitable Growth. Traveling and family time, so I can’t do a big writeup, so just a few somewhat randomly chosen links: Brad Plumer: Is inequality bad for economic growth? Jared Bernstein: The Impact of Inequality […]
I have a student in Argentina that sent me a message today. He says that it has become extremely difficult to take money out of the banks, even $100 USD. It is considered capital flight with legal difficulties. He says that $2 billion USD are leaving Argentina daily. The Argentine peso has been falling but […]
Link to video here. Richard Wolff is on fire here. He is explaining the cooperative model and why it will save the US. I have never seen a better video on the subject. This video should be required listening for all economists. The ideas presented should be reflected upon and understood. When I was studying […]
Hilary W. Hoynes, Diane Whitmore Schanzenbach, Douglas Almond made a genuinely important contribution to the debate on the effects of social welfare programs in this NBER working paper/revised manuscript “Long Run Impacts of Childhood Access to the Safety Net” They took advantage of a natural experiment to estimate the long run effects of access to […]