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

What Reinhart and Rogoff should do now

Carmen Reinhart and Kenneth Rogoff wrote an angry open letter about how Krugman has been uncivil to them.  Krugman’s reply strikes me as being convincing even devastating. Update: My full fisking here. I want to focus on one sentence in the R&R letter   “politicians may float a citation to an academic paper if it […]

Just What Exactly Do You Mean by “Money,” Buster? #23

I was poking around at the very interesting Divisia measures of money, and came up with the following chart. Update: Spreadsheet error in original graph. Result: this has little to impart. Never mind. Thanks to Mark Sadowski for pointing it out. Which has me, once again, asking monetarists the question in the title of this post. […]

Interview with Mark Thoma

Angry Bear readers are familiar with Mark’s writings: Mark Thoma is a macroeconomist and time-series econometrician at the University of Oregon. His research focuses on how monetary policy affects the economy, and he has also worked on political business cycle models. Mark is currently a fellow at The Century Foundation, a columnist at The Fiscal […]

How Apple avoids US taxes with shell games

by Linda Beale How Apple avoids US taxes with shell games Tomorrow’s Congressional hearing on the ability of major multinationals to shift profits offshore to avoid US tax (and everywhere-else tax) may finally get the attention of the American public onto a tax issue worth thinking about. As today’s New York Times makes clear, Apple […]

How The Great Moderation Destroyed the Fed’s Credibility

Much ado is made of the Fed’s “credibility,” which is dog-whistle-speak for its ability, willingness, and decided inclination to jump all over any (expected or imagined) whiff of that horrifying threat — inflation! — especially the most terrifying bogeyman, “wage inflation.” You won’t, on the other hand, find “credibility” discussed when people speak of the […]

Rules? In a Knife Fight?!

Allan Marks, in a comment on a Krugman post, reminds me of one of my favorite scenes in filmdom. Krugman’s complaining that he doesn’t understand the rules that his detractors are arguing by, and Marks suggests he watch this (55 seconds): Is anyone else wishing our esteemed President knew the rules for knife fights? Cross-posted […]

Fed’s Dudley Agrees: QE is Not About the Reserves, or “Printing Money”

Or: “Dudley Makes Mock of the Monetarists.” In my post The Fed is not “Printing Money.” It’s Retiring Bonds and Issuing Reserves, I said: …when the Fed gives the banks reserves and retires bonds, it’s taking on market risk/reward, replacing it with absolutely nonvolatile, risk/reward-free assets (at least in nominal terms). It’s removing leverage and volatility from […]