Monthly Archives: July 2017

Scarcity of financial intermediation?

Ricardo J. Caballero, Emmanuel Farhi, and Pierre-Olivier Gourinchas write, For the last few decades, with minor cyclical interruptions, the supply of safe assets has not kept up with global demand. The reason is straightforward: the collective growth rate of the … Continue reading

Posted in financial markets | 12 Comments

Amazon arithmetic in a bubble, continued

A commenter writes, AWS (the Amazon “cloud”), is wildly profitable (20%+ margins), and while only 10% of their revenue currently, is growing much (over 2x) faster than the rest of the business. He offers these figures for the second quarter: … Continue reading

Posted in financial markets | 4 Comments

What I’m Reading

Culture and Power: The Sociology of Pierre Bourdieu, by David Swartz. An excerpt: Bourdieu in fact speaks of three different types of field strategies: conservation, succession, and subversion. Conservation strategies tend to be pursued by those who hold dominant positions … Continue reading

Posted in books and book reviews, Economic education and methods | 2 Comments

Yes, but can it help you predict?

From acommenter: I’d ask why self-interest needs to be manifested in overtly economic terms. If you define self-interest broadly enough, then the statement “people pursue their self-interest” becomes irrefutable. And if you cannot refute it, then it is just an … Continue reading

Posted in Economic education and methods, public choice | 25 Comments

Arithmetic in a bubble, once again

Mark J. Perry writes, Amazon and Facebook were in the news this week for “joining an exclusive club open to only the richest companies in the world: both crossed the half-a-trillion mark.” Those two companies join Apple ($785 billion as … Continue reading

Posted in financial markets | 15 Comments

Clark Medal trends

Concerning the John Bates Clark award, Beatrice Cherrier and Andrej Svorenčík write, From the citations of the medalists from the late 2000s onward, one get the impression that all economics has indeed become applied Pointer from Tyler Cowen. I agree … Continue reading

Posted in Economic education and methods, Tyler Cowen is my Favorite Blogger | Comments Off

Money, interest, and the economy

John Cochrane writes, Investment responds to the stock market, and the stock market moves because risk premiums move, not because interest rates move. He goes on to suggest that if monetary policy can effect the economy, it must work through … Continue reading

Posted in Monetary Economics, PSST and Macro | 8 Comments

How economic model-building is unique

Consider two rationales for building models: (a) Build a model in order to clarify the signal by filtering out the noise in a complex causal system. This is a knowledge-seeking endeavor. (b) Build a model in order to be able … Continue reading

Posted in Economic education and methods | 14 Comments

Applied TLP

Megan McArdle writes, Trump has coalesced around himself the people who are most interested in order, leaving the people who are focused on freedom and coercion somewhat unmoored. There’s a place for that conservative thought: Crime is the ultimate barbarian … Continue reading

Posted in Three-Axes Model | 41 Comments

Sales of homes to foreign buyers

CNN Money reports, The National Association of Realtors released a report Tuesday that said foreign buyers and recent immigrants spent an estimated $153 billion on American properties in the year ending March 2017. That was a 49% increase over the … Continue reading

Posted in Housing and housing finance, Scott Sumner is Coherent, trade and immigration | 17 Comments