Via Eszter, there is one thing that is very clear from this graphic (duplicated below because I can’t figure out how to embed it): There is an excess of home-based internet capacity in the United States, for which people are definitionally paying too much. The question is whether this is a problem. If you argue […]

rdan The Economist reminds us of a common notion, but not explored a lot in the news. Decline in demand overall, and finance, is a major concern for trade partners, but is complicated because products often travel from country to country in stages of completion to finished product. Economists believe that an additional reason for […]

rdan American Economic Alert points us to a lack in who has a voice in manufacturing. The Economic Recovery Advisory Board was set up in 2008: ERAB’s makeup is a case in point. Headed by former Federal Reserve Chairman Paul Volcker, the panel contains members from many perspectives beyond what Mr. Obama calls the Washington […]

In which Robert Waldmann finds economic theory useful. A question: when does deficit financed public spending cause higher interest rates which cause private investment to be lower than it would be other things (including the spending) equal. Proposed answer, not when we are in a liquidity trap. Depending on the definition of liquidity trap this […]

By Spencer In today’s New York Times business section I read this headline: Weak Dollar Helps Send Profit Down at Oracle As I read the article I found this statement: The company attributed the declines to the effects of a stronger dollar, which makes deals done in other currencies worth less. I wonder which statement […]

rdan UNU Conversation Series As the think-tank for the United Nations and its member states, the United Nations University brings some of the most important intellectual and policy voices from around the globe, including Olivier Blanchard, Janos Bogardi, Francois Bourguignon, Noam Chomsky, Richard Cooper, Evsey Gurvich, Thomas Hoenig, Robert Johnson, Jomo Kwame Sundaram, Wim Naude, […]

by cactus Inflation or Deflation, That is the Question These days some smart people are expecting inflation, other smart people are expecting deflation, and there’s another big batch of smart people who are either expecting both or don’t know. I figured – why should smart people have all the fun? So I came up with […]

by Linda Beale There is an interesting book that I am just beginning, by George A. Akerlof & Robert J. Shiller. It’s called “Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism”. The jacket says that the authors “challenge the economic wisdom that got us into this mess, and […]

rdan I have been chasing information on the budget deficits and potential impacts, the US trade deficit, and the cap and trade arguments linked to HR 2454 Waxman-Markey bill of hundreds of pages. Mostly it was figuring out how assumptions in data and baselines (such as the CBO reports) made a difference in the shrillness […]

by reader ilsm The good and the bad (not ugly) analysis of the radically restructured US Army Future Combat System (FCS) if offered by GAO 09-793T: The testimony covers the lessons from the “restructure” of the US Army’s Boeing (Lead System Integrator, LSI, Bush administration non-ovation) FCS. The report lists “Good” things to do again, […]