…the effective demand limit. Anyway… Mr. Krugman also calls for a model in his post… “(I’m going to try some formal modeling on all this, but if anyone else wants…

In part 1, a basic model of financial repression was presented. Now I apply the model to look for evidence of financial repression in the United States. First I need…

…say that models are false by definition and the Permanent Income Model (PIM) is useful, because it captures some aspects of the data, that is provides explanations for some otherwise…

…cut inflation at any cost might not be credited. In such a model of asymetric information about the monetary authority’s objective function, credibility must be obtained through the costly signal…

…can turn into deflation. The video above gives my view using a model of System Dynamics. (Link to first video describing model.) I show a model that says inflation is…

Many macroeconomists use models of aggregate consumption based on utility maximization by a rational representative agent. Some models also include liquidity constrained or rule of thumb consumers, but all micro…

…normal path in this business cycle. So no, I do not see any real damage, Mr. Krugman. The economy is growing normally. Let me explain with the model for effective…

…6500 worker facility will produce the next generation of batteries in order to introduce a less expensive line of cars in 2017, the Tesla Model 3. This would be a…

…participation rate would reflect this view. Is the 6.1% unemployment rate a reliable measure of un- and under-employment? One model for the supply & demand in the labor market plots…

…in Congress who understood that, it is likely that those who crafted the bill did. The more insidious damage of PAEA was to create a business model that completely moved…