…I wrote elsewhere, as the stock market and housing market slow down, declining consumption by capital income will offset consumption gains by labor. This is how I would explain the…

…the Nasdaq is down 1.81% for the day. The Dow has fallen below my attractor level of 16,800. A day when the stock market falls tends to make capitalists think…

…of profit rates. Profit rate = (Productivity – Real compensation) * Total labor hours/Capital stock Modified Profit rate = Capital share of income * Total labor hours/Capital stock The difference…

…to be $678 billion. Capital controls that had been imposed during the 1998 crisis were removed in the 2000s, and capital inflows, including bank loans and bond issues, increased significantly….

…composition of these capital flows. Eduardo Olaberría of the OECD has studied the impact of capital inflows, and reported that debt-based flows are more likely to be associated with increases…

…good fundamentals may be of little help for a government trying to shelter its economy from the instability in world markets. The importance of global (or “push”) factors for capital…

…sure Warsh and Spence are wrong, but I can make a simple theoretical argument for their conclusion. The argument is that QE causes low non residential fixed capital investment. DeLong…

…limits on interest rate and foreign exchange mismatches on balance sheets, caps on bank loan to value ratios, and countercyclical capital requirements (see here for an overview of these measures)….

…to hold foreign equity and bonds. Martin Wolf points out that capital account liberalization may lead to a “large net capital outflow from China, a weaker exchange rate and a…

…will peak when the utilization of either capital or labor is optimized. In the United States, the optimization of capital always takes precedent over the optimization of labor. With that…