This video of a speech by Ben Bernanke in 2003, is quite interesting. In the speech he laid the groundwork for what would eventually be his policy to combat the Great Recession. He talked about inflation, slack in the economy, price stability and even the possibility of taking the Fed funds rate to the […]

Each week I get an email from Slate telling me what the latest articles are there, this one caught my attention; Richard Posner on Roberts” For those of you who may not know, Richard Posner writes articles on the economy; but, he is also an 7th District Appeals Court Justice. The 7th District is the […]

Yves at Naked Capitalism writes “NY Fed’s Bogus Estimate of Return on College and the Neglect of the Intellectual Commons” Yesterday, the New York Fed released a new report by Jaison R. Abel and Richard Dietz, Do the Benefits of College Still Outweigh the Costs? which is getting good coverage in the mainstream media. Its […]

Yves Smith linked this morning on her Naked Capital blog to my post from yesterday called “The Secretive Democracy Alliance’s Secret Is Out: Some of its members are elitist, racist and self-serving,” and added a comment about it: Helpful, but does not follow the logic to the obvious conclusion. Why is the Dem apparatus harping […]

Clarification appended below. —- [David] Brock, a former “right-wing hit-man”-turned-top-big-money-Democratic-operative, is part of a behind-the-scenes campaign to convince donors it’s OK to attack the Koch brothers for spending millions of dollars while doing the exact same thing for the left. “You’re not in this room today trying to figure out how to rig the game […]

by Sandwichman at Econospeak Supply Creates Its Own Demon: Marc Andreessen and “Textbook Luddism” Marc Andreessen has a column in the Financial Times with the headline, “Robots will not eat the jobs but will unleash our creativity.” Here are the first two paragraphs: A growing number of people seem to fear that robots will eat […]

Perhaps something to slow down speeding thoughts this morning….or just fun.  Beautiful weather here near Boston at dawn. Post by Organ Donors.

With the model presented in the previous post, Attractor States in the Business cycle, we could conceivably project the path of the next business cycle. How could we do this? The model shows that productive capacity regularly rose by 18%. The last rise was 17%. So I will assume a 17% rise in attractor productive […]

This post has been updated! I just posted about the Silly Confusion over Potential GDP. The main idea of the post is that real GDP made a transition to a new normal level after the crisis. And patterns from past business cycles show that real GDP stays close to this new level. But then two […]