Will Macroeconomists Ever Agree?

Kevin Drum wonders if macroeconomists will ever be able to agree: The part I can’t figure out is why there’s so much contention even withinthe field. In physics and climate science, the cranks are almost all nonspecialists with an axe to grind. Actual practitioners agree pretty broadly on at least the basics. But in macroeconomics you don’t have […]

The Myth that Growing Consumption Inequality is a Myth

Kevin Hassett and Aparna Mathur argue that consumption inequality has not increased along with income inequality. That’s not what recent research says, but before getting to that, here’s their argument: Consumption and the Myths of Inequality, by Kevin Hassett and Aparna Mathur, Commentary, WSJ: In multiple campaign speeches over the past week, President Obama has […]

Inflation and Unemployment

I have a bunch of meetings this morning — you know how those go. That will give me a chance to think about these graphs: This is a graph of PCE core year-over-year inflation versus unemployment since 2007 (the scatterplot with headline rather than core PCE is a noisier version of this, but the basic […]

A Nobel Prize for Work that Matters in Our Everyday Lives

A few comments on yesterday’s Nobel Prize in Economics (no link — still stuck in editing at MoneyWatch link now active): A Nobel Prize for Work that Matters in Our Everyday Lives: (MarketWatch) The Nobel Prize in Economics was awarded to Alvin Roth and Lloyd Shapley for their work on matching markets and mechanism design. What exactly do […]

What is the ‘Appropriate Monetary Policy’?

David Altig responds (after the release of the minutes from the last FOMC meeting, I’m a bit less pesimistic): The (Unfortunately?) Consistent Record of the Recovery: Duy and Thoma Respond, by David Altig: Mark Thoma, always generous in linking and reposting our musings here at macroblog, took a look at my last postand read a sense of helpless resignation: David […]

Ryan on Stimulus: As Usual, He fell Off Both Sides of the Horse

Paul Ryan voted for a $715 billion stimulus package: Paul Ryan and the Stimulus: A Match Designed to Make My Head Explode, by Michael Grunwald: My main obsession these days is President Obama’s misunderstood stimulus bill…, but I’m also fascinated by … Paul Ryan and his absurd reputation as a brave deficit hawk. So I thought I’d check out […]

Paul Ryan’s Nutty Views on Monetary Policy

I don’t understand why someone with such a clownish views is lauded as a policy wonk: What did Ayn Rand teach Paul Ryan about monetary policy?, by Brad Plumer: In 2005, Paul Ryan explained that he often looks to Ayn Rand’s novel “Atlas Shrugged” as inspiration for his views on monetary policy. “I always go […]

‘Seizures May Be Cities’ Last Hope in Mortgage Crisis’

Amir Sufi of the University of Chicago Booth School of Business: Seizures May Be Cities’ Last Hope in Mortgage Crisis, by Amir Sufi, Commentary, Bloomberg: The failure to address crippling household-debt burdens is leading local governments to embrace the radical idea of using eminent domain to seize and write down mortgages. Over the past month, […]

Laughing at the Laffer Curve

Via the IGM Forum: Question B: A cut in federal income tax rates in the US right now would raise taxable income enough so that the annual total tax revenue would be higher within five years than without the tax cut. Marianne Bertrand, Darrel Duffie, and Claudia Goldin are the disappointing “uncertain” votes out of […]