- Links for 12-18-14
- Fed Watch: Quick FOMC Recap
- 'Minimal Model Explanations'
- 'Wall Street Salivating Over Further Destruction of Financial Reform'
- A Big Safety Net and Strong Job Market Can Co-Exist. Just Ask Scandinavia.
- Higher capital requirements: The jury is in
Posted: 18 Dec 2014 12:06 AM PST
Posted: 17 Dec 2014 05:39 PM PST
Posted: 17 Dec 2014 12:59 PM PST
Some of you might find this interesting:
"Minimal Model Explanations," R.W. Batterman & C.C. Rice (2014), A Fine Theorem: I unfortunately was overseas and wasn't able to attend the recent Stanford conference on Causality in the Social Sciences; a friend organized the event and was able to put together a really incredible set of speakers: Nancy Cartwright, Chuck Manski, Joshua Angrist, Garth Saloner and many others. Coincidentally, a recent issue of the journal Philosophy of Science had an interesting article quite relevant to economists interested in methodology: how is it that we learn anything about the world when we use a model that is based on false assumptions? ...
Posted: 17 Dec 2014 12:58 PM PST
Surprise! Or not (more concerned with this than whether the Fed changed a few words in its Press Release following the FOMC meeting):
Posted: 17 Dec 2014 10:17 AM PST
A Big Safety Net and Strong Job Market Can Co-Exist. Just Ask Scandinavia: It is a simple idea supported by both economic theory and most people's intuition: If welfare benefits are generous and taxes high, fewer people will work. ... Here's the rub, though: The idea may be backward.
Some of the highest employment rates in the advanced world are in places with the highest taxes and most generous welfare systems, namely Scandinavian countries. The United States and many other nations with relatively low taxes and a smaller social safety net actually have substantially lower rates of employment. ...
In short, more people may work when countries offer public services that directly make working easier, such as subsidized care for children and the old; generous sick leave policies; and cheap and accessible transportation. ...
And this analysis may leave out some other factors... Robert Greenstein, the president of the Center on Budget and Policy Priorities, notes that wages for entry-level work are much higher in the Nordic countries than in the United States, reflecting a higher minimum wage, stronger labor unions and cultural norms that lead to higher pay. ... Perhaps more Americans would enter the labor force if even basic jobs paid that well, regardless of whether the United States provided better child care and other services. ...
Posted: 17 Dec 2014 10:08 AM PST
A follow up to this:
Higher capital requirements: The jury is in, by Stephen Cecchetti, Vox EU: Summary Regulators forced up capital requirements after the Global Crisis – triggering fears in the banking industry of dire effects. This column – by former BIS Chief Economist Steve Cecchetti – introduces a new CEPR Policy Insight that argues that the capital increases had little impact on anything but bank profitability. Lending spreads and interest margins are nearly unchanged, while credit growth remains robust everywhere but in Europe. Perhaps the requirements should be raised further.
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