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
A: Other institutions, public and private, step in–and while that has pluses and minuses, at the end of the day, it’s inefficient and unsustainable. Over at PostEverything.
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
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
To open our full employment event last week, Larry Summers presented an extremely compelling case for the importance of using fiscal policy to close our persistent output gaps, lower unemployment, and repair some of the economic damage resulting from “austerity,” i.e., reducing budget deficits in weak economies. At the same time Larry was presenting this… Read more