Links (7/15/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Why Is Inflation Low Globally? – FRBSF A hot economy eventually boosts inflation. Such is the simple wisdom of the Phillips curve. Yet inflation across developed countries has been remarkably weak since the 2008 global financial crisis, even though unemployment rates are near historical lows. What is behind this recent disconnect between inflation and unemployment? Contrasting the experiences of developed and developing economies before and after the financial crisis shows that broader factors than monetary policy are at play. Inflation has declined globally, and this trend preceded the financial crisis.
  • Libra's dramatic call to regulatory action – Cecchetti & Schoenholtz The stated objectives of creating Libra are to improve the efficiency of payments, reducing costs and speeding transfers; and to improve financial access. While these are laudable goals, it is essential that we achieve them without facilitating criminal exploitation of the payments system or reducing the ability of authorities to

    Continue reading “Links (7/15/19)”

Links (7/15/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Why Is Inflation Low Globally? – FRBSF A hot economy eventually boosts inflation. Such is the simple wisdom of the Phillips curve. Yet inflation across developed countries has been remarkably weak since the 2008 global financial crisis, even though unemployment rates are near historical lows. What is behind this recent disconnect between inflation and unemployment? Contrasting the experiences of developed and developing economies before and after the financial crisis shows that broader factors than monetary policy are at play. Inflation has declined globally, and this trend preceded the financial crisis.
  • Libra's dramatic call to regulatory action – Cecchetti & Schoenholtz The stated objectives of creating Libra are to improve the efficiency of payments, reducing costs and speeding transfers; and to improve financial access. While these are laudable goals, it is essential that we achieve them without facilitating criminal exploitation of the payments system or reducing the ability of authorities to

    Continue reading “Links (7/15/19)”

Links (7/9/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Thumbs Down to Facebook’s Cryptocurrency – Joseph E. Stiglitz
    Only a fool would trust Facebook with his or her financial wellbeing. But maybe that’s the point: with so much personal data on some 2.4 billion monthly active users, who knows better than Facebook just how many suckers are born every minute?
  • Trump Is Losing His Trade Wars – Paul Krugman
    Donald Trump’s declaration that “trade wars are good, and easy to win” will surely go down in the history books as a classic utterance — but not in a good way. Instead it will go alongside Dick Cheney’s prediction, on the eve of the Iraq war, that “we will, in fact, be welcomed as liberators.” That is, it will be used to illustrate the arrogance and ignorance that so often drives crucial policy decisions. For the reality is that Trump isn’t winning his trade wars.
  • Mysteries of Monetary

    Continue reading “Links (7/9/19)”

Links (6/29/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Opportunity cost, MMT and public spending – Crooked Timber
    … In the “chartalist” reasoning underlyng MMT, the fact that governments can issue their own sovereign currency means that there is no need to “finance” public spending by taxation; rather taxation is a tool used to manage aggregate demand so as to keep the economy fully employed but not at a point where excess demand creates inflation. That (essentially correct) position can easily slide into the (only subtly different, but radically mistaken) view that governments can spend money on anything they like with no need for any increases in taxes or cuts in other spending. As I will argue over the fold, a correct version of MMT makes no such claim. Unfortunately, while avoiding the error themselves, a lot of MMT theorists have not shown much willingness to set their more naive followers straight. …
  • It is aggregate demand—recession, weak recovery, catastrophe, and

    Continue reading “Links (6/29/19)”

Links (6/23/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (6/23/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (6/17/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (6/14/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Is Labour’s fiscal policy rule neoliberal? – mainly macro That is the charge some on the left, particularly followers a movement called MMT, have laid against Labour's Fiscal Credibility Rule (FCR). MMT stands for nothing very informative, but it is a non-mainstream left-wing macroeconomic school of thought. Bill Mitchell, one of the leading lights of MMT, has run a relentless campaign against the FCR through his blog. As my own work with Jonathan Portes helped provide the intellectual foundation for the FCR, I will try and explain why I find the neoliberal charge nonsensical. …
  • Bill Mitchell's fantasy about Labour's fiscal rule – mainly macro My last post about outlandish attacks from some MMTers on Labour’s Fiscal Credibility Rule (FCR) was designed to be read by non-economists, and I didn’t want to bore them or waste space with all the fantasies Bill Mitchell has spread about the rule. But as I’ve

    Continue reading “Links (6/14/19)”

Links (6/14/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Is Labour’s fiscal policy rule neoliberal? – mainly macro That is the charge some on the left, particularly followers a movement called MMT, have laid against Labour's Fiscal Credibility Rule (FCR). MMT stands for nothing very informative, but it is a non-mainstream left-wing macroeconomic school of thought. Bill Mitchell, one of the leading lights of MMT, has run a relentless campaign against the FCR through his blog. As my own work with Jonathan Portes helped provide the intellectual foundation for the FCR, I will try and explain why I find the neoliberal charge nonsensical. …
  • Bill Mitchell's fantasy about Labour's fiscal rule – mainly macro My last post about outlandish attacks from some MMTers on Labour’s Fiscal Credibility Rule (FCR) was designed to be read by non-economists, and I didn’t want to bore them or waste space with all the fantasies Bill Mitchell has spread about the rule. But as I’ve

    Continue reading “Links (6/14/19)”

Links (6/10/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • This time might not be different ~ Antonio Fatas Estimating the probability of a recession over a short horizon has so far proven to be a challenging task for economists. Each cycle looks slightly different from the previous one and trying to come up with precise indicators of crises leads to either overpredicting them or missing their timing as some risks are underestimated. As the US enters its longest expansion ever, we are back to a discussion on whether there are any reliable indicators that can help us forecast the next turning point. Without providing an exhaustive list of all candidates, let me highlight the interaction between three statistical patterns and how they inform us (or not) about the risks ahead: …
  • Mar-a-Lago Comes for British Health – Paul Krugman …last year he tweeted that Britons were marching in the streets to protest a health system that was “going broke

    Continue reading “Links (6/10/19)”

Links (6/10/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • This time might not be different ~ Antonio Fatas Estimating the probability of a recession over a short horizon has so far proven to be a challenging task for economists. Each cycle looks slightly different from the previous one and trying to come up with precise indicators of crises leads to either overpredicting them or missing their timing as some risks are underestimated. As the US enters its longest expansion ever, we are back to a discussion on whether there are any reliable indicators that can help us forecast the next turning point. Without providing an exhaustive list of all candidates, let me highlight the interaction between three statistical patterns and how they inform us (or not) about the risks ahead: …
  • Mar-a-Lago Comes for British Health – Paul Krugman …last year he tweeted that Britons were marching in the streets to protest a health system that was “going broke

    Continue reading “Links (6/10/19)”

Links (6/5/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (6/5/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (6/5/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (5/31/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (5/31/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




Links (5/28/19)


This post is by from Economist's View


Click here to view on the original site: Original Post




  • Trump Tantrums the Dems Out of a Trap – Paul Krugman I gotta say, it was very clever of Nancy Pelosi to steal Donald Trump’s strawberries, pushing him over the edge into self-evident lunacy. As everyone knows, Trump stormed out of a meeting on infrastructure, apparently out of uncontrollable rage over Pelosi’s remarks pointing out that the administration’s stonewalling on all fronts, including raw defiance of the law requiring that it provide the president’s tax returns, obviously amount to a coverup of something (and maybe multiple things.) And Democrats should be grateful. …
  • Advertising as a major source of human dissatisfaction – VoxEU Although the negative impact of conspicuous consumption has been discussed for more than a century, the link between advertising and individual is not well understood. This column uses longitudinal data for 27 countries in Europe linking change in life satisfaction to variation in advertising spend. The results

    Continue reading “Links (5/28/19)”

Links (5/28/19)


This post is by Mark Thoma from Economist's View


Click here to view on the original site: Original Post




  • Trump Tantrums the Dems Out of a Trap – Paul Krugman I gotta say, it was very clever of Nancy Pelosi to steal Donald Trump’s strawberries, pushing him over the edge into self-evident lunacy. As everyone knows, Trump stormed out of a meeting on infrastructure, apparently out of uncontrollable rage over Pelosi’s remarks pointing out that the administration’s stonewalling on all fronts, including raw defiance of the law requiring that it provide the president’s tax returns, obviously amount to a coverup of something (and maybe multiple things.) And Democrats should be grateful. …
  • Advertising as a major source of human dissatisfaction – VoxEU Although the negative impact of conspicuous consumption has been discussed for more than a century, the link between advertising and individual is not well understood. This column uses longitudinal data for 27 countries in Europe linking change in life satisfaction to variation in advertising spend. The results

    Continue reading “Links (5/28/19)”

Links (5/24/19)


This post is by from Economist's View


Click here to view on the original site: Original Post




  • Raj Chetty’s plan to change how Harvard teaches economics – Vox
    Raj Chetty, a prominent faculty member whom Harvard recently poached back from Stanford, this spring unveiled “Economics 1152: Using Big Data to Solve Economic and Social Problems.” Taught with the help of lecturer Greg Bruich, the class garnered 375 students, including 363 undergrads, in its first term. That’s still behind the 461 in Ec 10 — but not by much.
  • Fiscal Policy Options for Japan – Blanchard and Tashiro
    For many years, the Japanese government has promised an eventual return to primary budget surpluses, but it has not delivered on these promises. Its latest goal is to return to primary balance by 2025. Blanchard and Tashiro, however, argue that, in the current economic environment in Japan, primary deficits may be needed for a long time, because they may be the best tool to sustain demand and output, alleviate

    Continue reading “Links (5/24/19)”

Links (5/22/19)


This post is by from Economist's View


Click here to view on the original site: Original Post