Paul Krugman today wrote that we are in a “Keynesian crisis that calls for Keynesian policies”. Keynesian policies are monetary and fiscal policy to increase demand in the economy. I wrote a response earlier today about an article from Mark Thoma who called for the same Keynesian policies of monetary and fiscal policies to increase […]

Sarah Binder is a professor of political science at George Washington University and a senior fellow at the Brookings Institution, offers some thoughts on the FED and its changing role ( re-posted with authors permission, for the complete post go to original): Beyond the horse race to lead the FED …As the horse race for […]

For a point of view we don’t see much lately: Mariana Mazzucato, a Professor of Economics at the University of Sussex, discusses the role of government in innovation and economic growth. In her latest book The Entrepreneurial State she argues that active state investment has been the secret behind most radical innovations, and that this requires economists […]

by Linda Beale The Right cuts food stamps to pass corporate farm welfare–where’s the sense in that? The House has its priorities firmly in mind.  Those priorities involve making sure that the wealthy people and corporations keep their wealth while any and all possible cuts to any welfare or “entitlement” programs are made. All you […]

Mark Thoma, professor at the University of Oregon,, posted an article about why labor markets are struggling, “What is driving changes in the job market?” at CBS Money watch. He basically says that the labor market problems are cyclical, which means a Keynesian demand-deficient unemployment. There isn’t enough demand to allow unemployment to fall more […]

Paul Krugman posted an article today… “What Janet Yellen — And Everyone Else — Got Wrong“. But there is something he is getting wrong too, or at least, doesn’t seem to be aware he is getting it wrong. He talks about the economic recovery having been so sluggish. And he offers this explanation… “The best […]

Jared Bernstein writes about the EITC today (Earned Income Tax Credit), which is a program to help lift people out of poverty when they fall into low-paying jobs. I just want to add another wrinkle to the story. When a student defaults on their student loans, which is something that will happen more and more […]

Some economists seem to argue that expansionary fiscal policy is both completely ineffective and will place the burden of debt on our children. Yes I am arguing with a straw man (it is time for the two minutes Chait). Straw economist argues two things. First there is Ricardian equivalence so temporary tax cuts do not […]

Is Obamacare “Medicaid for the Middle Class?” –A Muddled Argument by Maggie Mahar Yet another catchy phrase, “Medicaid for the middle class,” is popping up in conservative propaganda. What are Obamacare’s opponents trying to say? Those who have latched onto this catchphrase make two very different arguments. The arguments actually contradict each other, but they […]