…Stephen Moore should read William Poole’s “Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model” (Quarterly Journal of Economics, 1970). In the standard Keynesian model, lower tax…

…from a couple of simple Excel models – the first one roughly capturing what Mr. Berry is trying to say. Each model forecasts real GDP (2004$) for both China and…

…demand-type elasticities, their model assumed fixed supply prices. In such a model, a higher tax would be fully reflected in the price at the pump with no effect on economic…

…other. Money will leave the system as quickly as it entered. Tyler links to a textbook discussion of the old-fashion money multiplier model and sides with Friedman. I wish I…

…wonder if the difference between the market price of an asset and some model’s prediction of that price is more of a reflection of the model and not some statement…

…equity. As the title suggests, his paper considers the implications of a particular deviation from the perfect capital market model. To consider the perfect capital model, however, assume Joe has…

…recently called “America the Risky?” that reported on the results of a model, developed by economists at Lehman Brothers, designed to predict major financial crises. That model showed that the…

…Scott’s long-argued model, where NGDP growth drives employment growth? As he says, he buries the lede in his first post. Here it is, from the end of the post (I’m…

…respect for the concept of effective demand. I have developed a new model for effective demand. In future posts at Angry Bear blog, Steve Roth and I are going to…

…plumb the depths of Edward’s model. So I’ve asked Ed to help me put together a basic introduction. Hopefully I’ll benefit from the blowback of ensuing discussions. In Chapter 3…