Archive for the ‘Recession/Stimulus’ Category

A Close Shave with Occam’s Razor

June 30th, 2014

Dean Baker goes on a vicious—even for him!—tear in response to Robert Samuelson’s column this morning on the state of economics knowledge about the business cycle.  Dean’s take down is definitely worth a read, as I too have been struck by the increasingly complex explanations offered for a sequence of economic events that seems fairly… Read more

The Great Recession, Hysteresis, Tolstoy, and Unhappy Economies

May 29th, 2014

All happy macro-economies are alike; all unhappy macro-economies are unhappy in their own way. This post, based on some important new work by Johns Hopkins Professor Larry Ball, will present a typology of those unhappy economies in a moment, but first, let’s talk about “hysteresis,” a problem that sounds as bad as it is.  It’s… Read more

Diagnoses and Prescriptions: The Great Recession

May 18th, 2014

There’s a very interesting, albeit down-in-the-weeds, analytic debate brewing around a confluence of recent publications.  Tim Geithner’s new book defends the interventions of the Treasury Department he led to reflate credit markets (and I worked with the team on this back then).   Mian and Sufi’s new book, reviewed here by Bin Appelbaum, argues that Treasury… Read more