Relevant and even prescient commentary on news, politics and the economy.

Simple Answers to Simple Questions, CRA edition

Dear Barry: The need for posts such as this one recurs because the large majority of economists are idiots. (Multiple exceptions noted—but not enough to change the truth of the initial statement.) As the regulatory reform report notes (quoted by PK at the last link above): In fact, enforcement of CRA was weakened during the […]

I Agree with Hank Paulson, not Paul Krugman

Ken Houghton notes that no one has stolen my ID or shifted my sense of politics or the economy. Brad DeLong has been running excerpts from the February 2009 Vanity Fair “Oral History” of the Bush White House. Time and priorities being what they are, I didn’t get a chance to read the whole piece […]

Barro on Keynes Barro and Grossman

Robert Waldmann Robert Barro wrote an op-ed in The Wall Street Journal. The substance of the op-ed is to report an estimate of the Fiscal multiplier 0.8 which is less than one. Thus, according to Barro, a stimulus will partially crowd out of investment, consumption or net exports and not just reduced leisure. Paul Krugman […]

This is why Krugman Makes the Big Bucks

The Quote of the 21st Century: And you’ve got Greg Mankiw — well, I don’t know what Greg actually believes, he just seems to be approvingly linking to anyone opposed to stimulus, regardless of the quality of their argument. Either that, or it’s a description of everything that is wrong with the field of Economics […]

If Ever There Were a Tipping Point in the Nationalisation Discussions…

Willem Buiter, whose early posts at Maverecon were the epitome of restraint, calls for nationalisation: By throwing cheap money with little conditionality at the banks, the Fed and the US Treasury may get bank lending going again. By subsidizing new capital injections, they reward bad porfolio choices by the existing shareholders. By letting the executive […]

Social Security ‘Reform’: the Undead Return

by Bruce WebbWhat does it take? A stake through the heart? A bullet through the brain? Baker and Krugman do some pushback.Dean Baker in his post The Post’s Jihad against Social Security points to this article Obama Predicts Years of Deficits over $1 trillion and notes that they don’t hesitate to single out the usual […]

Random Notes, or, More Posts I Don’t Have to Write

Greg Mankiw presents Yet Another Reason to regret skipping the AEA this year, though somehow the word “intentional” was left out of the description. Stan Collender, of all people, does the job I wished someone would do on Martin Feldstein’s WSJ op-ed. I may have beaten him by a day in calling it out, but […]