Archive for the ‘Financial Markets’ Category

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

Today’s Obsession in Fed Land: Two Little Words

September 16th, 2014

The big question surrounding the FOMC’s statement tomorrow is whether the committee will keep or drop the words “considerable time.” From MarketWatch: Since March, the Fed has promised that it intends to hold rates steady for a “considerable time” after it stops buying bonds, now on track to end in October. Specifically, the Fed said:… Read more

Absent full employment or a bubble, middle class income and wealth will fall.

September 15th, 2014

Robert Samuelson covers some useful ground this morning, reviewing income and net worth trends from the recent Survey of Consumer Finances, a triennial (it comes out every three years) survey of family income and wealth. I wanted to add a few points regarding timing of the trends he cites. First, Samuelson notes that if you… Read more