I enjoyed the chair’s speech today, assessing the state of the economy and holding forth on the Fed’s macro policy. Here are some bullets, along with an observation about an important way that life has gotten harder—maybe significantly harder—for the Fed in recent years. –As is her wont, Yellen focused on the slack that remains… Read more
As noted yesterday, I’m working on a longer piece about sky-high salaries—merit vs. “rents”—so I was interested to see this piece (“Invasion of the Supersalaries”—nice!) in the NYT this AM. That piece reports that “the median compensation of a chief executive in 2013 was $13.9 million, up 9 percent from 2012…” I’m assuming that 9%… Read more
I’m crunching on a longer piece on “rents” versus merit in US high-end salaries and their role in our uniquely high levels of inequality (“rents” here means being paid above your marginal product, or your individual contribution to your firm’s bottom line). Anyway, for good and I think obvious reasons, a strain of this literature… Read more
The NYT has a somewhat incomplete piece out this AM about how Bill Dudley, a former Goldman Sachs exec and now the president of the New York Fed (the Fed bank that interacts most closely with Wall St./financial markets), is allegedly raising concerns that lower leverage ratios–i.e., requiring banks to hold more capital against losses–will hinder… Read more
Just a quick slide from a presentation I’m giving tomorrow…kinda speaks for itself, I think.