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  • The Knot at the Bottom of the Rope


    Authority Authority:
    From a reader who I appreciate: David, I am curious if you have thoughts about insurance companies (especially P&C) hedging political risk … the answer to this question obviously will carry over to healthcare quickly. Recently, my state (Corrupticut) was hit by hurricane Sandy. Many municipalities (but not ...
    1 week ago
  • James Grant Interviewed by James Turk–Federal Reserve, National Debt, Money, Gold — Videos


    Authority Authority:
    James Grant and James Turk discuss gold, the Fed and the fiscal situation of the USA
    1 week ago
  • Sorted Weekly Tweets


    Authority Authority:
    China   Pettis: I would argue that until Beijing has cleaned up its debt problems and its very unstable balance sheets, it cannot move quickly. $$ Pettis: Reducing the [interest] subsidy by raising rates would cause them all to bleed money. (DM: thus fin’l liberalization difficult) $$ Pettis: Far more than ...
    1 week ago
  • Easy In, Hard Out (Updated)


    Authority Authority:
    My view is that there is no such thing as a free lunch, not even for governments or central banks.  Any action taken may have benefits, but also imposes costs, even if those costs are imposed upon others.  So it is for the Fed.  At the beginning of 2008, they had a small, clean, low duration (less than three years) ...
    1 week ago
  • News links


    Authority Authority:
    The semester is just about over; I still need to grade exams, etc., but last week was the last week of lectures.  And so I don’t feel the same sense of urgency to look for interesting news articles for my students.  But I’ll try to keep it going because it’s been fun and kept me in touch with what actually has ...
    1 week ago
  • A Belated Reinhart-Rogoff Rundown, Now With More Colbert…


    Authority Authority:
    I’ve been hesitant to write about this, since every time I try I just end up with phrases like “AN EXCEL ERROR ROFL!!!!” on the page, and I don’t feel like that entirely embodies what I would like to convey regarding the Reinhart-Rogoff situation. So I gave it the old college try on About.com instead . Some ...
    1 week ago
  • Life, power and progress in Ukraine


    Authority Authority:
    I spent about ten days in Ukraine on a job for the World Bank. During my time there, I got to thinking about development -- or the lack thereof. Countries, of course, do not develop. Development occurs when people cooperate to protect or create public goods (such as environmental goods or security) and secure private ...
    1 week ago
  • On the Lost Decade of the Oughts …


    Authority Authority:
    Tyler Cowen links to this Matt Yglesias post from yesterday. The “money” shot is this one: There are two obvious points the author is making here. First is that most “public investment” happens at the state and local level. While I do respect that this is an underappreciated and misunderstood fact, ...
    1 week ago
  • What is Wrong (and Right) in Economics?


    Authority Authority:
    Dani Rodrik: What is wrong (and right) in economics?, by Dani Rodrik : The World Economics Association recently interviewed me on the state of economics, inquiring about my views on pluralism in the profession. You can find the result on the WEAs newsletter  here (the interview starts on page 9). I reproduce ...
    1 week ago
  • Seven Myths about Keynesian Economics


    Authority Authority:
    The recent blow-up surrounding Niall Fergusons comments on Keynes concern for long-run issues prompted my latest column: Seven Myths about Keynesian Economics The claim that Keynesians are indifferent to the long-run is one of many myths about Keynesian economics.
    1 week ago
  • Technical vs. Fundamental Analysis – Which is Better?


    Invest2Success BlogAuthority Authority: 133
    Click Here to Review Technical Fundamental Trading Software and Screeners Technical and fundamental analysis are the two main types of analysis in the investing world. Technical analysis is mainly concerned with price movement of a security using charts and technical studies to predict its future price movements. ...
    1 week ago
  • Keynesian Bets: Whats Out There, by Bryan Caplan


    Authority Authority:
    As far as I can tell, none of the comments on my Keynesian bet bleg point out or propose a Keynesian bet.  On Twitter, however, Noah Smith alerted me to the existence of the following Smith-DeLong bet : If, at any time between 7/28/2012 and 7/28/2015, core consumer prices, as recorded in the FRED database series ...
    1 week ago
  • Keynesian Bets Bleg, by Bryan Caplan


    Authority Authority:
    The strongest evidence for Keynesianism, in my view, is introspection .  During the last five years, however, Ive often heard Keynesians claim that their views have been vindicated by events .  To which Im sorely tempted to respond: Its easy to claim "vindication by events" when your predictions are not only ...
    1 week ago
  • The Pyramid of Macroeconomic Insight and Virtue, by Bryan Caplan


    Authority Authority:
    Many of my friends laughed at Paul Krugman when he wrote : Maybe I actually am right, and maybe the other side actually does contain a remarkable number of knaves and fools. Krugman continued: The key to understanding this is that the anti-Keynesian position is, in essence, political. Its driven by hostility to ...
    2 weeks ago
  • Niall Ferguson’s Latest Idiocy


    Authority Authority:
    As I discussed in an earlier post , Niall Ferguson, the Harvard historian and author of numerous bad books about economics, is prone to writing and saying completely ignorant things, making one wonder about the intellectual heft of so-called academic “stars” who populate our institutions of higher learning. The ...
    2 weeks ago
  • Obama Is Having His Cake and Eating It and Having It and Eating It and Having It


    Authority Authority:
    The Obama administration bemoans the cuts made by the sequester. Time to put on our thinking caps. These are the facts about the process in May 2013: Presidents propose budgets. Congress passes, and the President signs, budgets that are often larger (and always different) than what the President ...
    2 weeks ago
  • 165,000 New Jobs In April. Maybe.


    Authority Authority:
    The  Bureau of Labor Statistics announced employment figures for April 2013: 165,000 new jobs. No one knows exactly what that means , but one thing is certain: This number will certainly change. Does that indicate government ineptitude or political manipulation? No. Like many kinds of ...
    2 weeks ago
  • The Skyrocketing U.S. National Debt and Unfunded Liabilities For Medicare and Social Security — Videos


    Authority Authority:
    U.S. Debt Clock http://www.usdebtclock.org/ What Are the Dangers of Too Much Debt? Economy Is Still Americans’ Top Concern http://www.gallup.com/poll/146708/americans-worries-economy-budget-top-issues.aspx Most Important Problem ...
    2 weeks ago
  • Keynes, Keynesians, the Long Run, and Fiscal Policy


    Authority Authority:
    Paul Krugman on how to tell when someone is "pretending to be an authority on economics": Keynes, Keynesians, the Long Run, and Fiscal Policy : One dead giveaway that someone pretending to be an authority on economics is in fact faking it is misuse of the famous Keynes line about the long run. Here’s the actual ...
    2 weeks ago
  • Microfounded Social Welfare Functions


    Authority Authority:
    This is very wonkish, but its also very important. The issue is whether DSGE models used for policy analysis can properly capture the relative costs of deviations of inflation and output from target. Simon Wren-Lewis argues -- and I very much agree -- that the standard models are not a very good guide to policy ...
    2 weeks ago

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