How much of their income do labor and capital use for consumption of finished goods and services? Now, if labor and capital do not spend their money on consumption, they…

…the value of long-duration assets–so capital is misallocated and we wind up with a capital structure that has in it too many long-duration relatively-safe projects that make at best very…

…year, has been financed by capital inflows, including inward FDI. Capital inflows will drop off as international banks and other financial services providers relocate at least some of their operations…

…situation where capital reaches full employment before labor. Actually that is what I always see. Then labor becomes more fully employed as capital stops being employed. That is a normal…

…the change in real capital stock per employee.     As the chart shows, there is a very tight relationship between productivity growth and the growth of the real capital…

by New Deal democrat Do “high pressure” low unemployment economies lead to more capitalinvestment? The Atlanta Fed’s Macroblog has an interesting article today on whether a “high pressure” low unemployment…

…relevance to the real world. The silly argument is that lower taxes on profits imply a lower cost of capital for firms. Investors will demand the same return net of…

by Joseph Joyce Capital Flows in a World of Low Interest Rates Interest rates in advanced economies continue to persist at historically low levels. This trend is due not only…

…global financial crisis (GFC) in a recent NBER Working Paper, “Capital Flows Waves—or Ripples? Extreme Capital Flow Movements Since the Crisis.” They update the results reported in their 2012 Journal…

by Joseph Joyce Portfolio Capital Flows to Emerging Markets amid the Pandemic Among the most notable economic responses to the COVID-19 pandemic has been the turnaround in capital flows to…