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

The glass is half full eh one fourth full. Would you believe slightly damp ?

Paul Krugman To be fair, applying maximizing thinking has achieved some major successes even in macroeconomics. The permanent income/life cycle style of consumption theory does a much better job of accounting for the stylized facts about spending than the old, mechanical consumption function. The natural rate hypothesis, with its crucial implication that high inflation would […]