Archive for the ‘Economic Growth’ Category

Not to be negative, but…a critical comment on negative interest rates.

February 15th, 2016

With most economic variables, I think we make too big a deal about crossing zero on the number line. I don’t feel great if real GDP’s growing at 0.2% and horrified if it’s at -0.2%. Deflation with price growth at -0.5% isn’t terribly worse than disinflation with price growth at +0.5%. But with nominal interest… Read more

How states can stop wasting their taxpayers’ money

February 8th, 2016

[This post was written jointly with Ben Spielberg] Most state governors want to bring more businesses and employment to their states and maintain sustainable budgets. An important new paper from two of our colleagues, Michael Mazerov and Mike Leachman (M&L), provides a new and important insight in this regard: incentives in the form of tax… Read more