Too wide a scope for a blog post? You betcha. But this was going to be the core of my PhD Dissertation back when I was in such a program and had delusions of adequacy. So those who wonder “WTF does any of this have to do with labor hours?” Well bear with me. Or […]
The Anglo-Saxon Hide, Adam Smith, Karl Marx and the 35 Hour Work Week
An Effective Demand theory of the Fed Rate through the Business Cycle
In time, we will see a debate start raging as to whether the Fed rate should have started rising earlier instead of at the end of 2015. Some like me say that the Fed rate should have started rising earlier because the market had momentum and the capacity to accept the rate rises. Others say […]
Back to back quarters of Corp. profit declines… What could it mean?
I saw this tweet today… Just fyi, the US stock market has never NOT crashed post back to back quarters of corp profit declines — Keith McCullough (@KeithMcCullough) January 6, 2016 Profits peak when the economy reaches its effective demand limit. A recession eventually follows. How much can the psychology embedded in the tweet move […]
Reflections on Tim Duy’s Projections for 2016
Tim Duy gave his projections for 2016. I will go through his 10 points with my reflections from the effective demand point of view. 1. He says that there will be no recession and the economy will stabilize by the end of the year. Yet, I see a higher probability of recession than he does. […]
Is there a model in which a Country which borrows in it’s own currency has a Greek style crisis ?
usa = Greece ? A challenge. Paul Krugman asks how a country like the USA could have a Greek style crisis. In his Mundell-Fleming Lecture Krugman defined Greek style crisis twice ” a Greek-style crisis of soaring interest rates” and ” a Greek-style scenario of higher rates and a slump in the real economy” . […]
Can Systemic Financial Risk Be Contained?
by Joseph Joyce Can Systemic Financial Risk Be Contained? Risk aversion is a basic human characteristic, and in response to it we seek to safeguard the world live in. We mandate airbags and safety belts for automobile driving, set standards for the handling and shipment of food, build levees and dams to control floods, and […]
Open thread Jan. 5, 2015
Ireland still isn’t back
Ireland remains, in some circles, a poster child for austerity’s success: It paid off its bailout loan early! It regained its 2007 Gross Nation Income per capita in 2014! Unemployment is only 8.9%! Don’t believe the hype. Paul Krugman recently pointed out that Ireland’s employment performance continues to be dismal, especially in comparison with currency-devaluing, […]