Archive for the ‘Economic Growth’ Category

Balanced growth, full employment can help fix a lot of what’s broken

November 30th, 2015

One wants to avoid being an economic reductionist, as in balanced growth, full employment, more broadly shared prosperity would fix everything. Of course, it wouldn’t. But based on contemporary and historical accounts, it would be likely to help a lot. And I’m not just talking living standards. I’m talking politics, turnout, tolerance, and more. Over… Read more

Quick note on the use of “natural rates” in macro analysis

November 24th, 2015

In yesterday’s post on underemployment, I employed various concepts used by many in high places in contemporary economic analysis, including “natural rates” of un- and underemployment–i.e., the lowest rates consistent with stable inflation–the “equilibrium” Fed funds rate–the one consistent with stable growth that’s neither too hot nor too cold–and so on. Some readers and Tweeters… Read more

We live amidst multi equilibria

November 2nd, 2015

Re the title of this post, that’s just a fancy way of saying that this notion that the economy is ever really at equilibrium seems pretty far off to me. Over at WaPo wherein I frame this from the perspective of inequality, i.e., the answer to the question “how’s the economy doing?” is “who’s economy… Read more

The next recession is out there somewhere. Meanwhile, we’ve got other problems.

October 25th, 2015

So Ylan Mui warns that a recession is out there somewhere, and we’re getting closer to it every day. That is, by definition, true. And while she garners some data to make the case, one can find data on both sides of the issue. Generally speaking, economists cannot predict recessions. Back in the mid-2000s, Dean… Read more

Full employment and the candidates’ agendas

October 19th, 2015

The presidential debates are generating an important discussion about which public policies will help to reduce inequality, with D’s focusing on tamping down excesses in financial markets, higher minimum wages, balancing work/families, college affordability, paid for by progressive taxation, and R’s going with trickle-down tax cuts, as is their wont. Over at WaPo, I argue that… Read more