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February 6, 2014

Latest Posts from Economist's View

Latest Posts from Economist's View

On the Road Again...

Posted: 06 Feb 2014 05:04 AM PST

Traveling to the NY Fed today, so just a few quick ones before my plane takes off at 5:40 a.m. (ughhh!!!).

'How the New Classicals Drank the Austrians' Milkshake'

Posted: 06 Feb 2014 04:23 AM PST

In a tweet, Roger Farmer says "This is a very good summary of Austrian vs classical Econ":

How the New Classicals drank the Austrians' milkshake: The "Austrian School of Economics" is still a name that is lovingly invoked by goldbugs, Zero Hedgies, Ron Paulians, and various online rightists. But as a program of scholarship it seems mostly dead. There is a group of "Austrians" at George Mason and NYU trying to revive the school by evolving it in the direction of mainstream econ, and then there is the Mises Institute, which contents itself with bathing in the fading glow of the works of the Old Masters. But in the main, "Austrian economics" is an ex-thing. It seems to me that the Austrian School's demise came not because its ideas were rejected and marginalized, but because most of them were co-opted by mainstream macroeconomics. The "New Classical" research program of Robert Lucas and Ed Prescott shares just enough similarities with the Austrian school to basically steal all their thunder. The main points being...

'Why Thomas Jefferson Favored Profit Sharing'

Posted: 06 Feb 2014 04:05 AM PST

David Cay Johnston:

Why Thomas Jefferson Favored Profit Sharing, by David Cay Johnston: President Obama's State of the Union speech last week focused on America's severe and growing inequality, but he stopped short of repeating the Founding Fathers' many warnings that this condition could doom American democracy.
The founders, despite decades of rancorous disagreements about almost every other aspect of their grand experiment, agreed that America would survive and thrive only if there was widespread ownership of land and businesses. ...

'Do Oil Prices Predict Inflation?'

Posted: 06 Feb 2014 03:51 AM PST

Apparently not:

Do Oil Prices Predict Inflation?, by Mehmet Pasaogullari and Patricia Waiwood, FRB Cleveland: Some analysts pay particular attention to oil prices, thinking they might give an advance signal of changes in inflation. However, using a variety of statistical tests, we find that adding oil prices does little to improve forecasts of CPI inflation. Our results suggest that higher oil prices today do not necessarily signal higher CPI inflation next year, although they do help to explain short-term movements in the CPI. ...

Links for 02-06-2014

Posted: 06 Feb 2014 12:03 AM PST

'The One Percent'

Posted: 05 Feb 2014 09:55 AM PST

Robert Solow:

"Correspondence: The One Percent: Robert Solow, N. Gregory Mankiw, Richard V. Burkhauser, and Jeff Larrimore." Journal of Economic Perspectives, 28(1): 243-248: The cheerful blandness of N. Gregory Mankiw's "Defending the One Percent" (Summer 2013, p p . 2 1 – 3 4 ) may divert attention from its occasional unstated premises, dubious assumptions, and omitted facts. I have room to point only to a few such weaknesses; but the One Percent are pretty good at defending themselves, so that any assistance they get from the sidelines deserves scrutiny...

There is also a response from Mankiw, and additional discussion from Burkhauser and Larrimore.

How Much Influence Does the Fed Chair Have Over Monetary Policy?

Posted: 05 Feb 2014 09:15 AM PST

At MoneyWatch:

How much does the Fed chair influence monetary policy?, by Mark Thoma: With Janet Yellen taking over as head of the Federal Reserve earlier this week, a natural question to ask is how much power the Fed chair has over monetary policy decisions. ...

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