The search for a model to explain Secular Stagnation is happening behind the scenes at the moment. Larry Summers is presenting Secular Stagnation as an Inverse of Say’s Law… “Lack of demand over time creates lack of supply”. But getting the mathematical mechanisms of how lack of demand suppresses supply (output) seems to be missing. […]
By way of Mark Thoma, there is a new video of Larry Summers talking about Inverse Say’s Law. It is a wonderful video and one that could wake up the economics profession about Effective Demand. His views will not only challenge Fresh Water economists, but also Salt Water economists. (His talk starts at 9-minute mark.) […]
Angry Bear Spencer England commented on Tim Duy’s post… Very good wrap-up. There is virtually no evidence that the economy is breaking out of the past few years very sluggish growth. One For the Doves, by Tim Duy: The March employment report came in pretty much in line with expectations. Nonfarm payrolls gained by 192k, […]
The quotes in this post’s subject line are very much intended as a double entendre. I’m of course referring to the title of Piketty’s book (which I’ve read about 80% of, jumping around). But even more, I’m talking about his definition of “capital.” I’ve ranted frequently about economists’ failure to define this term or agree on […]
Back in 2008 cactus wrote Back at you on the GM argument. Reader Jack sends this note on 2014: Proof positive that the UAW is/was(?) the cause of car maker’s demise!! That’s how I’d put it to all those out there that still harbor the idea that the poor performance of much of the American […]
Seth Klarman’s work is to take money from clients and invest it. Yet, he made news recently by returning some $4 billion back to his clients. He did not want to invest their money. Why would he do such a thing when it is his job to invest money? He says the market is not […]
by J Tsimeskes Overhead Allocation vs. Theft I was readingDean Baker’s excellent post today on high speed trading. My initial reaction was that this was simply theft, high frequency traders supply absolutely no value to anyone but reduce the gains made by legitimate traders. The first comment, however, made me think. SteveB asks “I don’t […]
I am posting this because the source of this study caught my attention. It is out of the Ben-Gurion University of the Negev (BGU) and the University of Amsterdam, Psychologists Dr. Shaul Shalvi and Dr. Carsten K. W. De Dreu respectfully. Dr. Shalvi is the head of BGU’s Center for Decision- Making and Economic Psychology. […]
by Joseph Joyce The IMF and Ukraine The International Monetary Fund last week announced an agreement with Ukraine on a two year Stand-By Arrangement. The amount of money to be disbursed depends on how much other financial support the country will receive, but will be total at least $14 billion. Whether or not this IMF […]
The following video was posted in Ed’s Post by Marko. I thought it deserved a wider audience. The symposium included a discussion regarding raising the minimum wage to $15. Mr. Hanauer, being an honest to goodness real billionaire talked about what that would mean for his situation. I like the way he put it. He […]