by Joseph Joyce The Shifting Consensus on Capital Controls: Gallagher’s “Ruling Capital” Among the many consequences of the global financial crisis of 2007-09 was a shift in the IMF’s stance on capital controls. The IMF, which once urged developing economies to emulate the advanced economies in deregulating the capital account, now acknowledges the need to […]
The unemployment rate is officially at 5.5% in the US. But is that rate true? Maybe the rate should actually be higher when one considers the low labor participation rate and the long-term unemployed. Civilian Labor Force The civilian labor force has not risen much since the crisis. (link) Do we conclude therefore that there […]
Along similar lines as what Kansas has been doing with its budget for education, Louisiana has been cutting in favor of doling out large tax cuts and credits for business getting in return little if any economic impact. While A&E’s Duck Dynasty receives ~$330,000/episode from the state, Louisiana State University is preparing for additional budget […]
Washington Post’s Catherine Rampell opined an example of what could happen in 2016 if the Republicans win by featuring what is happening with education in Kansas after another $51 million in cuts. A recent letter by 17-year-old junior at Smoky Valley High School Haeli Maas to Governor Brownback cuts to the chase of it. To […]
The OECD has posted this measure for most countries for 2013, so I thought I’d update this chart. It pretty much speaks for itself. Cross-posted at Asymptosis.
by Dale Coberly Social Security Works by Nancy Altman and Eric Kingson A friendly review from a different perspective. I have great respect for Altman and Kingson for the work they they have done writing this book. I disagree with their ultimate “fix” for Social Security (it ain’t broke), but I want you to read […]
Nick Hanauer, Joseph Sitglitz videos. This is the latest presentation Nick Hanauer has made regarding the upside downness of our economy and the backward, selfish thinking that has gotten us here. In this one he is talking to his “plutocrat” friends: We plutocrats need to see that the United States of America made us not […]
The story hardly bears repeating: Pricing is the ultimate miracle of Darwinian markets. Competitors who produce goods at lower prices thrive, expand their operations, and produce more. Those who charge higher prices (for equivalent goods) are driven to extinction when sensible purchasers abandon them for their more-efficient competitors. This inexorable mechanism drives innovation, investment, and productivity, […]
Dan here…Worth reading the whole 12 pages. (Hat tip New Deal democrat) Do economic crises reflect crises in economics? Keynote address, ‘Rethinking Economics’ conference, Stiftverband für die Deutsche Wissenschaft/Handelsblatt, Frankfurt am Main, 23 January 2012. Diane Coyle, Enlightenment Economics and Institute of Political and Economic Governance, University of Manchester The ‘series of unfortunate […]
I will present a way to determine potential real GDP using a regression of past data. First take the official CBO potential and subtract it from real GDP. When the red line is above zero (0), real GDP is over potential. Normally the red line rises above potential before a recession. So it looks as […]