I have been presenting a new model to explain the forces around inflation. (link1, link2) Antonio Fatas poses a very good question. You can lower interest rates, but can you raise inflation? “But if monetary policy is being successful we expect inflation expectations and growth expectations to increase. Both of these forces should push long-term […]

In case you missed it, like I did, the velocity of the M2 money supply is declining more quickly. That normally indicates that the economy has taken the turn toward an eventual contraction.

by Mike Kimel Policy Demands for Black Power, Freedom and Justice Earlier this month NBC news reported: The Movement for Black Lives — under the catch-all banner of the Black Lives Matter movement — has put together what it describes as a “clear vision of the world where black humanity and dignity is the reality.” […]

I continue to explore the model that I posted this morning extending a relationship between inflation and capacity utilization. The model shows that labor share would determine the most balanced inflation target… and the inflation target then becomes variable depending upon the how labor share changes in the economy. Remember, it was once thought that […]

I have been in the workshop building a model for inflation and other things. It builds upon the model for forecasting the profit rate cycle. And also upon the model for the relationship between inflation and net profit rates. The model was provoked by a video from Khan Academy on youtube. This model has many […]

What do you get if you mix Donald Trump and Donald Duck? Just a bit of humor for the late night crowd…

Today Donald Trump gave a speech in Detroit describing some economic policies he’d like to pursue if he became president, and like with his other periodic “policy” speeches, he sounded as if he was encountering the speech, and the substance therein, for the first time as he sleepily read it off a teleprompter. But that doesn’t mean that […]

I see that Ben Bernanke talks about how the Fed’s views of the economy are changing, in particular that the Fed funds rate at the Natural level of production (Terminal as Bernanke puts it) is being revised downward in the past year. This agrees with my research into effective demand. I see that the Natural […]

Heartwarming: It’s still unclear how or why the scrappy, apricot-colored dog with pointy ears showed up to the starting line of the 155-mile ultramarathon in June. The closest village was several miles away, and all that lay ahead was the vast, unforgiving Gobi Desert. Dion Leonard, a distance runner from Scotland, noticed the pup scampering alongside a group […]