Monthly Archives: August 2013

From Different Planets

Daniel Little: the idea that a properly functioning market economy will tend to reduce poverty and narrow the extremes of income inequality has been historically refuted — at least in the case of American capitalism. Echoed by Mark Thoma. On … Continue reading

Posted in Growth Causes and Consequences, income distribution-wealth-poverty, Libertarian Thought, Mark Thoma is Indispensable | 8 Comments

Labor Force (non-) Participation

David Leonhardt writes, Yes, the unemployment rate has fallen. But almost the entire reason it has fallen is the drop in the number of people in the labor force — either working or actively looking…This shift long predates the recent … Continue reading

Posted in labor market, Mark Thoma is Indispensable, PSST and Macro | 4 Comments

Macro-prudential = Micro Management

So says John Cochrane. This is not traditional regulation—stable, predictable rules that financial institutions live by to reduce the chance and severity of financial crises. It is active, discretionary micromanagement of the whole financial system. A firm’s managers may follow … Continue reading

Posted in links to my essays, public choice, regulation | Comments Off

A Question

From the comments on this post. if it were made clear that in the event of a crisis the shareholders would be wiped out and the bondholders would take whatever loss was required, then why should anyone care what financial … Continue reading

Posted in Financial Crisis of 2008, financial markets | 6 Comments

Want Job, Won’t Look For One

Troy Davig and José Mustre-del-Río explore this category in the labor market surveys. The crisis saw a sharp rise in the number of people who, in response to surveys, indicated they wanted a job but were not actively seeking one. … Continue reading

Posted in labor market | 5 Comments

Banks and Political Power

Simon Wren-Lewis and I may disagree on many things, but not on this. Most economists are instinctively against state subsidies, unless there are obvious externalities which they are countering. With banks the subsidy is not just an unwarranted transfer of … Continue reading

Posted in Financial Crises, Mark Thoma is Indispensable, public choice | 3 Comments

Textbooks and the Cloud

Frances Woolley writes, When a new textbook costs $150 or $200, the maximum fine for downloading copyright material is $5,000, and the probability of being caught and convicted is fairly low (especially for those who know how to take appropriate … Continue reading

Posted in Economics of Education | 3 Comments

Macroeconomic Methodology

Here is the draft introduction and conclusion to my chapter on economics as history rather than physics. Economists love to dress up as physicists. We like to put theories into the form of equations. However, there are important differences between … Continue reading

Posted in Economic education and methods, PSST and Macro | 6 Comments

Marriage and Child-Bearing Trends

On this post, Kay Hymowitz left a comment. Women today marry on average at 27; in 1950 it was closer to 20. Eighty percent of women marry at some point. Though that’s down from 90% in the mid century,it’s still … Continue reading

Posted in behavioral economics, books and book reviews | 8 Comments

Loosening the Monetary Dial

Hasan Comert’s Central Banks and Financial Markets is strong reinforcement for my tendency to be skeptical of the effectiveness of monetary policy. What Comert says is that the evolution of the financial system has tended to decouple monetary aggregates from … Continue reading

Posted in books and book reviews, Monetary Economics | 2 Comments