A consumption tax is a wealth tax
Josh Barro recently discussed a study which polled Americans on attitudes...oward wealth: Indeed, while...he...op quintile of Americans hold about 84% of national balance sheet wealth,...
Author : TheMoneyIllusion
What caused the Great Recession?
A collapse in AD. But what caused that? Excessively tight monetary policy. But what caused that? Mistakes by the Fed. But what caused that? Misdiagnosis...
“Ironically enough,” Bernanke is sounding increasingly market monetarist
A number...f commenters have discussed Bernanke’s speech from nine days ago. There are market monetarist ideas throughout the speech, including: 1. Low long term rates...
A new monetary economics blog
Alex Jutca has a new blog on monetary economics. In one post he discusses a lunch he had with Greg Mankiw: One of the salient...
Good deflation/bad deflation
Here is Izabella Kaminska of the FT: Robots, automation and technology may not be responsible for all the...flation experienced in Japan since 2000, but if...
Stock markets say the darndest things
We all know that little kids will often blurt out an uncomfortable truth, which is not supposed to be spoken in polite society. Stock markets...
What the markets want
Here’s why the market reaction was underwhelming : The unemployment rate drop to 7.7 percent...long with 236,000 new jobs renewed chatter that the Federal Reserve...
Louis Woodhill on QE3
Here’s Louis Woodhill in Forbes: So, how is this QE3 thing working for us? During three months of QE3, 4Q2012, nominal GDP (NGDP), which is...
Tax increases and AD (zero multiplier in action?)
Jim Geraghty of NRO sent me this: Tax increases the fiscal cliff deal allowed: 1. Payroll Tax : increase in the Social Security portion of...
Finance Profs Should Stop Using U.S. Data
IF THERE is an article of faith among investors, it is that equities are the best investment over the long run, far better than government...