These are tense moments… At 1 am in the morning, Russia made a dramatic announcement to raise its base interest rate from 10.5% to 17%. Their ruble was falling fast yesterday. There is capital flight out of Russia. So the rate rise was meant to attract money back into their country. They even raised their […]
by Nancy O You’d think that the Supreme Court would have better things to do than write decisions constituting rehashes of old law. But, nooo! In its recent decision in Integrity Staffing Solutions v. Busk, 13-433, a decision released this week, the Court sagely decided that waiting in line is not compensable work related activity. […]
Brad DeLong points us to a archived posts by Robert Waldmann and Paul Krugman: Robert Waldmann: Why does Fiscal Stimulus Work ?: “Ah, now: Kevin Drum wrote about something… …I know something about. He notes a post by John Cochrane and said he was licking his lips waiting for the Delong/Krugman demolition which, however […]
Investment is an essential component of economic growth. Investment supports a healthy inflation rate by providing new money into the economy. What determines investment? Through the IS-LM model, we can understand interest rates and investment. The IS curve has its own model before it is incorporated into the IS-LM model. In that IS model, investment […]
by Joseph Joyce The G20 and the (Non)Pursuit of Financial Stability One of the legacies of the response to global financial crisis was supposed to be a renewed focus on international financial stability. A manifestation of this effort was the transformation of the Financial Stability Forum by the Group of Twenty (G20) into the Financial […]
I am of the opinion that the economy is overshooting its natural sustainable level at the moment. There are problems that can occur from that. Below I give a warning from the field of Population Ecology. Stocks are rising to records partly on the back of a lower labor share in 3rd quarter 2014, which […]
In this rather long post Brad (who writes faster than most people can read causing potentially inefficient fixed pixel formation) Brad spends an odd amount of time critiquing some neo-Austrian and Singer the inflation truther. But then he discusses the thoughts Bernanke and Summers, which are well worth discussing. Ben Bernanke says that there is […]
Dan here…Thomas Palley is Senior Economic Policy Advisor, AFL-CIO Washington DC. Here he addresses the issues of trade imbalances in a paper worth considering. by Thomas Palley The theory of global imbalances: mainstream economics vs. structural Keynesianism Prior to the 2008 financial crisis there was much debate about global trade imbalances. Prima facie, the imbalances […]
Dan here… Gail is an actuary interested in finite world issues – oil depletion, natural gas depletion, water shortages, and climate change. Oil limits look very different from what most expect, with high prices leading to recession, and low prices leading to inadequate supply. Her blog Our Finite World offers an extensive look at these issues. […]
I have often wondered whether the very low level of Private Residential Investment (also known as building houses) in the USA is due to unusually low expectations of long term increases in home prices. Here, I add that I would guess that the change was and end of the belief that the relative prices of […]