Monthly Archives: July 2016

Brad DeLong’s Manufacturing Demand Puzzle

He writes, If the income elasticity of demand for “manufactured goods” were one and the price elasticity of demand were zero, then we would have expected the decline in relative price to 40% of its initial value to be associated … Continue reading

Posted in Growth Causes and Consequences, Mark Thoma is Indispensable | 5 Comments

Six Breakthrough Ideas in Economics (?)

In the opinion of The Economist, they are: 1. Akerlof’s Market for Lemons 2. Minsky’s Financial Cycle 3. The Stolper-Samuelson Theorem (Wikipedia explanation). 4. The Keynesian multiplier 5. The Nash equilibrium 6. The Mundell-Fleming trilemma (Wikipedia explanation). Pointer from Greg … Continue reading

Posted in Economic education and methods, Specialization and Trade Economics Intro | Tagged | 2 Comments

Should you vote Libertarian this year?

From a Facebook friend, not a reader of the blog, this came via email. I’m pretty sure I remember that you are a Libertarian (or had promoted Libertarian ideas at one point). I have issues with both major candidates in … Continue reading

Posted in Libertarian Thought, Politics | 28 Comments

On Trump and Hitler, from the comments

The commenter writes, Should Trump win the election, he will take it as proof of his infallible instincts. How does an infallible man behave in a position of power? A bit like Hitler, no? I never defined authoritarian, but if … Continue reading

Posted in Politics | 23 Comments

Larry Ball Gets Pushback

From Stephen G. Cecchetti and Kermit L. Schoenholtz: There is certainly room for debate, but we see the question of whether Lehman’s net worth was negligible or sharply negative as ancillary to the real issue. In important ways, lending to … Continue reading

Posted in Financial Crisis of 2008 | 7 Comments

The Privatization Opportunity

Chris Edwards writes, Congress imposes a rigid monopoly on the nation so that we can continue to receive mainly “junk mail” in our mailboxes six days a week — while 205 billion emails blast around the planet every day. Retaining … Continue reading

Posted in business economics | 6 Comments

Where are the Servants?

I asked this question five years ago. Recently, on Facebook, Nathan Smith wrote, Consider the following hypothesis. Once upon a time, there was a notion of “respectability.” Society, represented chiefly by the gossip of housewives, imposed honesty, chastity, and maybe … Continue reading

Posted in Introductory Economics, labor market | 13 Comments

How Authoritarian is Donald Trump?

Reviewing the written version of Donald Trump’s acceptance speech, Matt Welch writes, here are seven* lines that drip with alarming levels of authoritarianism: [Welch proceeds to list the lines] My question is, compared to who? Compared to some mythical libertarian … Continue reading

Posted in Politics | 49 Comments

Paulson, Bernanke, and Lehman, continued

James B. Stewart writes, One of the more intriguing questions Professor Ball tackles is why Mr. Paulson, rather than Mr. Bernanke, appears to have been the primary decision maker, when sole authority to lend to an institution in distress rests … Continue reading

Posted in Financial Crisis of 2008, Mark Thoma is Indispensable | 11 Comments

Finance, Fragile, and Anti-Fragile

Tyler Cowen writes, The first factor driving high returns is sometimes called by practitioners “going short on volatility.” Sometimes it is called “negative skewness.” In plain English, this means that some investors opt for a strategy of betting against big, … Continue reading

Posted in financial markets, income distribution-wealth-poverty, Tyler Cowen is my Favorite Blogger | 9 Comments