From feedback, I need to write a better post about the AS-ED model. Thanks for the feedback from Coberly, Arne and David at CEPR. (link to previous post) This post presents what could be a huge breakthrough in understanding the business cycle. Banks and central banks should take notice here. Model of Effective Demand Figure […]
In its report on “The long-term decline in prime-age male labor force participation,” President Obama’s Council of Economic Advisers writes: Conventional economic theory posits that more ‘flexible’ labor markets—where it is easier to hire and fire workers—facilitate matches between employers and individuals who want to work. Yet despite having among the most flexible labor markets […]
Olivier Blanchard is criticizing the Aggregate Supply-Aggregate Demand model… “Turning to the supply side, the contraption known as the aggregate demand–aggregate supply model should be eliminated.” (link) Let me show you something good… I am the only one in the world using this model of Effective Demand with Aggregate Supply… What you are looking at […]
Words fail. Literally. By which I mean ‘literally’. Open thread: Somebody has to have apposite words.
With the temperature reaching 120 degrees here today in Phoenix (almost a record), allow me to have a little fun with my theoretical model of Effective Demand. There are two equations in my effective demand research that will be integrated in this post. First the Effective Demand equation… Effective demand limit upon real GDP = […]
by Mike Kimel Who Will Be the Next President? We don’t know much about Panama before the Spanish arrived other than that it fit the usual pattern you see just about everywhere – there were periods of bloody violence (wars, genocides) alternating with periods of some sort of coexistence. After the Spanish arrived, there was […]
The soul-searching at the Fed is beginning. I have written many times for over a year that the Fed will have a period when they start soul-searching. They will realize that the business cycle got away from them and they will not be able to normalize rates. They just got too far behind the curve. […]
McCain answered the question about the gun debate by citing Obama’s culpability for the attack through his foreign policy: “Barack Obama is directly responsible for it, because when he pulled everybody out of Iraq, al-Qaeda went to Syria, became ISIS, and ISIS is what it is today thanks to Barack Obama’s failures,” McCain said. … […]