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 […]
Category Archive for 'Macroeconomics'
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.
From an article forwarded to me today: In today’s COUNTY, oil and gas account for 75% of all exports, compared with 67% in 1980. Although COUNTRY no longer buys grain from OTHER COUNTRY, as it did in the 1980s, 45% of what Countrians buy today is imported. Walk around a department store in central CITY, […]
Arnold Kling has this today: Larry Summers writes. [we need] policies that restore a situation where reasonable growth and reasonable interest rates can coincide. To start, this means ending the disastrous trends toward ever less government spending and employment each year The CBO wrote, By 2038, CBO projects, federal spending would increase to 26 percent […]
Humans are to electricity like fish are to water … or something close to it. Electricity has become so vital to our lives, yet so reliable, that we hardly think about it, perhaps even as we pay our monthly electricity bills. reflecting on our reliance upon electricity may lead one into a paradox, and it […]
A major complaint levied against markets is that unless we have strong regulation of what can and cannot be sold, and under what conditions, that markets end up “commodifying” everything. Here is one such argument. Part of the difficulty with addressing claims of commodification is that the term has different meanings, and it’s not clear […]