If inflation starts to rise or the economy overheat, how can the Federal Reserve raise their Fed rate? One might think it would be impossible with $4 trillion in reserves, but the Fed does have a way. They can simply raise the floor under the Fed rate. What is the floor? The interest on reserves. […]
This is one of my usual boring posts on the same things I often type about. I have nothing much new to say and certainly won’t present any new evidence. There is no good reason to click “more.” In case anyone hasn’t guessed my answer, it is that I know of no good reason to […]
A legal-news blog I read mentions an article published today on the National Review Online aspirationally titled “A Strike at the Heart of Obamacare” and subtitled “A case against IPAB is heard by the Ninth Circuit — and eventually by the Supreme Court?” I don’t normally read the National Review and am not familiar with […]
Matthew Yglesias reports another dramatic study providing evidence against the safety net as hammock hypothesis. The argument that just giving poor people cash helps in the short run but hurts in the long run by creating dependency is extremely influential. The evidence supports the opposite conclusion. Here I note Yglesias noting Moises Velazquez-Manoff noting another […]
by Robert Waldmann Choosing sides not Sides Booman wants me to set up an account to comment at his tribune. Like hell. He debates John Sides about 2016. I want to pile on. Associate Professor of Political Science at George Washington University, John Sides, attempts to rebut Dan Balz’s fine analysis yesterday that the Republican […]
Just click the link I don’t have anything interesting to add. My problem is that I can’t help thinking of whether Konczal’s criticisms amount to a credible accusation of impropriety. I have tried not to blog this, but really can’t resist. At the end of 2012, David Beckworth told the Keynesians they were wrong. In […]
David Beckworth made a determination of nominal interest rates using the Output Gap from this paper…Measuring potential output: Eye on the financial cycle, by Claudio Borio, Piti Disyatat, Mikael Juselius. Determining the output gap correctly in real-time is very important for determining the nominal interest rate and many other factors. It is not good to […]
Jared Bernstein is saying that the unemployment rate is actually higher than 6.7%… “Based on numbers I’ve written about in greater detail, I think a more representative rate would be about 9 percent.” His reasoning is based on the fall in labor force participation. But I do not agree with his logic. 6.7% is a […]
Via Economist’s View is Mark Thoma’s new column in Financial Times Why is the Recovery so Agonizingly Slow? Why is the Recovery so Agonizingly Slow?, by Mark Thoma: Friday’semployment report underscored just how slow the recovery from the Great Recession has been. When the recession officially ended in June of 2009 the unemployment rate stood at […]