Hey, What’d I Miss? OTE Summary, 6/4 – 6/10

June 10th, 2013 at 12:16 pm
  • Explaining where a Washington Post editorial on deficit delusion went badly wrong.
  • On the May employment report:  previewing the report on Jobs Day Eve, noting that the report shows a game of high-stakes musical chairs, showing that public sector jobs don’t crowd out private sector ones.
  • On the weekend broadsheets:  Parts I and II on the skittish bond markets and phone records, Part III wherein I get a touch hawkish, and Part IV on how economic policy matters… a lot.
  • Pointing to a post by my CBPP colleague Chye-Ching Huang on three hyper-caffeinated “accounting techniques” that Starbucks uses to shelter profits.
  • Mulling over a weird, unsettling graph on gold trades and the jobs report.
  • Highlighting CAP’s Michael Linden’s piece on trends in fiscal and economic variables that have moved in ways that should inform the DC debate.
  • Commenting on skittish markets: it’s the stock market, not a romantic comedy. You gotta take the ups with the downs.
  • Noting that the S&P’s credit rating agency revised up its outlook for US debt — and financial markets yawn.
  • Laying out the eighth edition of Sequester Watch: those who forget about sequestration are doomed to repeat it…
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One comment in reply to "Hey, What’d I Miss? OTE Summary, 6/4 – 6/10"

  1. Peter K. says:

    I’ve been thinking about DeLong’s brainstorming blogpost and Krugman and Baker’s reactions.

    Regarding the banks’ balance sheets and the economy, I found your post on “non-stable elasticities” and skittish markets very helpful!

    DeLong doesn’t mention the Fed’s interest on excess reserves. The Fed’s exit strategy will involve raising the IOER. This will help shore up the banks’ balance sheets as rates rise.

    Think of these reserves as a non-stable elasticity. In the context of a growing economy where the Fed feels comfortable withdrawing support, the banks could dump these reserves into the economy causing inflation. But raising the IOER will help mitigate too large of a move. I have faith in the Fed.


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