This finding, while not surprising, is hard for me to square with the Political Economy we live in: On the Distribution of the Welfare Losses of Large Recessions by Dirk Krueger, Kurt Mitman, Fabrizio Perri – NBER WP#22458 How big are the welfare losses from severe economic downturns, such as the U.S. Great Recession? How […]
Category Archive for 'Macroeconomics'
In revisiting my class discussions on the economics of public goods, I came across a paper from the OECD that incredibly I had never been aware of. One of the major results in the paper is shocking. Now the sample size, as with all cross-country analyses, is small, and there are the usual caveats about […]
Does anyone actually store money under their mattress?
I don’t have a pony in this race aside from the fact that I don’t want to live through a Great Depression: If we do not act, and act soon, we are headed for another Great Depression. Yikes.
Tim Taylor talks about Keynes’ view on secular stagnation, investment and the government’s role in managing aggregate demand: Keynes begins by stating: “It seems to be agreed to-day that the maintenance of a satisfactory level of employment depends on keeping total expenditure (consumption plus investment) at the optimum figure … The problem of maintaining full […]
This result was surprising, sure to get lots of news coverage: It shows that despite a rise in measured capital-labor ratios, labor-augmenting technical change in the US has been sufficiently rapid that effective capital-labor ratios have actually fallen in the sectors and industries that account for the largest portion of the declining labor share in income since 1980 Paper […]
At least I admit it. So I’ve heard people with a professed Keynesian bent argue that we should end the idea of “tax cuts for the rich.” Fine, I suppose. But I’ve even heard this uttered during recessions, including the time from 2007 right up through today. I am not making this up so far, […]
GDP = National Income. It is argued that GDP is not a reliable measure of well-being. I agree. Therefore income is not a reliable measure of well-being. Therefore income inequality is not a reliable measure of the distribution of well-being. And before you jump into my tribal pool, this could very well mean that well […]
Readers who are following the adulation of Thomas Picketty’s Capital in the 21st Century do not need much information about the book. One major theme of the book is that if the rate of return on “capital” exceeds the overall rate of return in the entire economy, then it follows that the rich and elderly gain in […]
If you read the Fed’s consolidated financial statements for fun and take them seriously, you would learn that the Fed’s current leverage ratio is … … … 77:1. It’s just a number of course.