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

The Congressional Progressive Caucus Budget: A Vision for Our Time

April 9th, 2014

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