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Why The Rich Hate Inflation: Because They’re Creditors?
Inflation helps debtors and hurts creditors, deflation does the reverse. And the wealthy are much more likely than workers and the poor to be creditors.
Tesla Deal Even Worse Than First Thought
Tesla gets to receive tax credits for investment and job creation not only for itself, but for any of its suppliers that locate on the project’s huge site. And there's more.
Is Labor Force Participation Dropping Due To A Falling Labor Share?
A comment on a previous post said that the unemployment rate is under-measuring the true unemployment rate due to people having withdrawn from the labor market.
How The Rich Rule US Democracy
Dani Rodrik points to both a perennial question on economic self-interests and elections.
How Should Your Community Manage Its Water?
This is a great question, as it focuses on the impact of local politics in determining how to allocate water.
Measuring The Speed Of Consuming Slack
We can use capacity utilization and unemployment to set up a simple measure for consuming slack by dividing capacity utilization by the unemployment rate in terms of percentage change year-over-year. (
In The Mind Of Janet Yellen
The Taylor (1993) rule calls for the federal funds rate to begin rising in early 2013, whereas the Taylor (1999) rule has its liftoff in early 2015, a lot closer to the optimal control path.
What Do We Talk And Write About?
Instead of celebrating laissez-faire capitalism, we should start talking about how we would change things to lessen inequality. Exactly what political or economic arrangements should be created?
Understanding Piketty, Part 5 (conclusion)
Thomas Piketty’s Capital in the Twenty-First Century is the first book to make a data-driven examination of economic inequality. Based on hundreds of years worth of data, it attempts to determine the long-term trends in inequality and the social and political consequences that follow from them.
Should Policy Rate Rules Include Utilization Of Labor AND Capital?
When inflation or output is below target, the target Fed rate will be lower. The problem we have seen with the Taylor rule is the trouble that the CBO has had with estimating potential output.
Republican Dilemma On ACA: The Good Parts Take Money
‘Repeal and Replace’ is a pipe dream. Because all the good parts of ACA including guaranteed issue, coverage of pre-existing conditions and inclusions of young people on their parents’ policy actually cost money.
Where The ACA Should Go Next?
In his article, 'Where the ACA Should Go Next,' Rortybomb touts the 2009 House Bill which calls for a Public Option. Maggie Mahar replies with her own response.
Market Expects Fed To Be More Accommodative
The San Francisco Fed has a paper, Assessing Expectations of Monetary Policy, where they make a case that the market expects moneta
Ho Hum Or Bizarre?
Banks that rely less on borrowing are more stable because they are getting more of their financing from shareholder funds, which do not have to be repaid at short notice when turbulence hits.
The IMF And Sovereign Debt
The continuing inability of the Eurozone economies to break out of their current impasse means that any optimistic projections of declining debt to GDP ratios are unlikely to be achieved.
Measuring Slack With Short-term & Long-term NAIRUs
Potential GDP is based on the Long-term NAIRU… while slack in the labor markets is measured by the Short-term NAIRU. Therefore, potential GDP shows more slack than the labor market shows.
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