by Linda Beale Does Lowering Corporate Tax Rates Create Jobs? Answer is a resounding “no” For years (decades, actually), the American pro-wealthy right has argued that lowering corporate tax rates will create jobs. That is the presumed purpose behind the push by Dave Camp to enact a tax reform package with lower corporate rates, and […]
I’m rather terrified to find that Brad DeLong has replied to my recent post on this subject. I would expect greater inequality coupled with a higher propensity to save on the part of the rich to drive all asset yields down. Yet what we have seen has been a steep, prolonged fall in Treasury bond yields […]
I watch the transformation of Paul Krugman to understand the key importance of labor share. But first, let’s start with Till Van Treeck, who writes an article titled… U.S. Current Account Deficits and German Surpluses: The Role of Income Distribution in Global Imbalances. He presents evidence that labor share and inequality are creating a large part […]
While some debate whether QE is causing low inflation… there is a practical view of low inflation from an article written by Chun Wang at Advisor Perspectives. Here are some excerpts… “A key factor allowing the Fed to maintain QE is the lack of inflation. You would think after multiple rounds of synchronized global money […]
Update: Brad DeLong has replied, and I have replied to him. Dean Baker quite rightly takes Robert Samuelson to task for his op-ed on the causes of secular stagnation. Samuelson: The problem might not be a dearth of investments so much as a surplus of risk aversion. For that, candidates abound: the traumatic impact of the Great Recession […]
I put together a video on the natural real interest rate. There is not one single natural real rate. It is like what Steve Waldman said… “The word natural is always used to hide the constructed context in which an outcome occurs…” The natural real interest rate goes lower, as policy tries to push real […]
by Robert Waldmann Dreadful Plumbing with Downward Nominal Rigidity Dreadful plumbing with downward nominal rigidity This is a legible version (thanks Dan) of this post. This is the pointless math post which accompaniesthis and especially this post at angrybearblog. Here I am assuming that transition out of the liquidity trap is predictable. This means that […]
Today’s must-read Seattle Times article by Carol M. Ostrom and Amy Snow Landa (interactive graphic here and comparison table here) prompts me to write about a huge problem with American health insurance that I’ve been banging against quite personally in recent months. Excerpts below give an idea what an important article this is. My thoughts: Insurers are actively eliminating must-have hospitals from their networks, […]
by Mike Kimel Previewing Blinder and Watson (2015) Via James Hamilton at Econbrowser, I read about this paper by Blinder and Watson. From their abstract: The U.S. economy has performed better when the President of the United States is a Democrat rather than a Republican, almost regardless of how one measures performance. For many measures, including […]
Update: “Lord Keynes” provides a great explication of Kaldor’s theoretical work on this subject. Back in the day when I was running a high-tech conference company, we had a favorite (and actually rather cruel) interview question: “What’s the best price for a conference?” There was only one right answer: “The price that makes us the most money.” […]