Archive for the ‘Financial Markets’ Category

When Minsky raises an eyebrow, I pay attention. So should you.

November 19th, 2014

The work of the late economist Hyman Minsky has become increasingly relevant in recent years, as his understanding of the fragility of financial markets and their role in bubbles and busts was both deep and prescient. Other economists generally viewed financial markets as playing not much more than an intermediary function, passively allocating excess savings… Read more

Global growth, the $, (under-priced) oil and their impact on US growth rates.

October 22nd, 2014

Those stalwart number crunching research economists at Goldman Sachs (i.e., not the traders) have a really interesting graph out this AM that packs in a ton of info on current growth pluses and negatives. The figure uses the Federal Reserve’s macro model (which is actually publically available now…and, yes, I will fire it up myself… Read more

Wherein I do the DC thing of talking about a book I’ve yet to read.

September 29th, 2014

I need to read Martin Wolf’s new book, “The Shifts and the Shocks,” his diagnosis of the factors that brought on the financial crisis and his prescriptions for getting out of this terribly damaging bubble, bust, repeat cycle. But in the meantime, it’s worth giving a read to Felix Salmon’s review in yesterday’s NYT. Salmon… Read more

A misleading critique of my inequality and growth analysis

September 29th, 2014

Sorry, but Steve Roth’s critique of my Inequality and Growth paper for CAP is misleading and inaccurate. Moreover, he had to work pretty hard to miss my points linking inequality to macro-instability and thus persistent periods of weak growth. Not only does Roth somehow miss my emphasis on what I think are critically important linkages… Read more