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August 5, 2014

Latest Posts from Economist's View

Latest Posts from Economist's View

Links for 8-05-14

Posted: 05 Aug 2014 12:03 AM PDT

'How Austerity Wrecked the Recovery'

Posted: 04 Aug 2014 03:50 PM PDT

Kevin Drum picks this as his "Chart of the Day" (it's from Calculated Risk):


He remarks:

...after every previous recession of the past 40 years, the subsequent recovery was helped along by increased government outlays. In the 2007-08 recession—and only in this recession—the recovery was deliberately hobbled by insisting on declining government outlays. This is despite the fact that it was the worst recession of the bunch.

The result, of course, was that there was no Obama Miracle in 2011. In fact, there was barely even an Obama Recovery. If you think that's just a coincidence, I have a bridge to sell you.

'Adam Posen on Japan’s Recovery: Going Right, Just Not Going Well'

Posted: 04 Aug 2014 10:39 AM PDT

How are things going in Japan?:

Adam Posen on Japan's Recovery: Going Right, Just Not Going Well, by Jacob M. Schlesinger, WSJ: A year and a half after Prime Minister Shinzo Abe launched his program to end Japan's long slump, a number of economists are turning skeptical about prospects for success. One remaining optimist — albeit with some caveats — is Adam Posen...
The gist of Mr. Posen's argument is that despite some short-term setbacks, there are plenty of positive signs Japan is on track to return to steady growth and end deflation. But progress will be slow and unsteady, in part because he believes Japan must balance its growth strategy with a plan to curb its debt.
Current disappointment is partly the fault of the "spin" that higher prices would lead to a self-reinforcing cycle of higher wages, spending, and investment, he said. "It would be nice to have. But it wasn't virtuous cycle or death spiral. We're out of the death spiral. That's good."
Here are edited excerpts from the interview...

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