…happen to capital flows? It is likely that capital will flow out of the country, given that the country started with a current account deficit this would be a problem…

How much spare capacity remains in the economy in terms of labor and capital? This question is an incredibly important one… and economists such as Krugman, Bernstein and Baker are…

…way into asset prices. We will need a tighter monetary policy to control the instabilities from too much liquidity among owners of capital. Paul Krugman wants wages to rise before…

…is not produced, so cannot be saved), and that financial assets are not “capital” (roughly, they’re claims on capital). But they do understand on some level: what Krugman calls the…

…the fundamental error guiding the Fed’s logic. I posted a model of the money market split into two sectors, one of capital income and one of labor income. Capital income…

…capital inflows to the developing economies drop by up to 50% by the end of the year. In the “overshooting scenario,” long-term rates rise by 200 basis points, and capital…

…the time for its crisis-management policies and its advocacy of deregulating capital flows. In retrospect, Fischer’s arguments in favor of capital account liberalization appear overly zealous, and he has drawn…

…Stockholders are Fungible, Employees are Not This has been on my mind after reading some review’s of Piketty’s “Capital in the 21st Century” (which I really need to make time…

…but the basic point is that modern businesses exist today only as a result of a large supply of social and institutional capital. Without this capital many would still exist…

…come back to earth. So he protects his clients by keeping their capital safe, out of the market. He holds some 40% to 50% of his capital in cash. I…