Feb 22 8:00am The Incidental Economist
Kevin Birmingham is the winner of the Truman Capote Award for his book,The Most Dangerous Book: The Battle for James Joyce’s Ulysses. The book also won the 2015 PEN New England Award for Nonfiction. You would think that an author of a first book that won multiple prizes would be a rising academic star. But […]...
Feb 22 7:30am The Incidental Economist
The following originally appeared on The Upshot (copyright 2017, The New York Times Company). I once received a lot of blowback for an Upshot article in which I showed (with evidence) that exercise is not the key to weight loss. Diet is. Many, many readers cannot wrap their head around the notion that adding physical activity, and […]...
Feb 22 7:27am Cafe Hayek
TweetIn this essay I defend supply-and-demand-based ECON 101 courses against law-professor James Kwak’s poorly informed criticisms of such courses. (I thank George Leef for his skillful assistance in turning my first draft of this essay into a readable final product.) A slice: When taught well and wisely, supply-and-demand analysis is the central part of the […] The post In Defense of ECON 101 appeared first on Cafe Hayek.
Feb 21 10:04pm Chris Blattman
In a minute I’m going to get to a great new book on U.S. poverty and policing. But first I have to digress. You’ll see where I am going in a minute. Overly paternalistic poverty programs give me a nails-on-a-chalkboard feeling … Continue reading → The post The only thing anti-poverty programs are missing is the long arm of the law? appeared first on Chris Blattman.
Feb 21 7:00pm VoxEU.org: Recent Articles
The positive relationship between democratic development and economic outcomes is well established. Using three decades of international data, this column identifies a new channel for this effect – the cost of credit to corporations. It also analyses loan pricing in Turkey to reveal a substantial rise in the average cost of lending after the attempted coup d’etat in July 2016. Together, these results highlight how efficiency in loan pricing results in a comparative advantage for firms in democratic countries over those in less democratic or authoritarian countries.
Feb 21 7:00pm VoxEU.org: Recent Articles
With its current competences lacking the ability to address distribution effects, the EU is seen as an agent of globalisation rather than a response to it. At the same time, it is charged with undermining national autonomy, identity, and control. This column sets out five guiding principles for policy articulation at the EU level for a new positive EU narrative.
Feb 21 6:42pm Econbrowser
As the Administration mulls over possible trade actions against China, it is important to concede official trade statistics do provide in some sense a misleading picture of US-China bilateral trade — but not misleading in a way that bosters the Administration’s arguments. Currently, the full value of a widget partly made in Malaysia, Singapore, and […]...
Feb 21 5:34pm Credit Trends from Moody's Analytics
A far greater cluster of high yield borrowers have elevated default risk compared to 2014 when the overall high yield spread was last as narrow as it is today.
Feb 21 5:34pm Credit Trends from Moody's Analytics
Confidence is improving in the euro zone as it softens in U.S.
Feb 21 4:00pm A Marketplace for Ideas
We live in interesting times. They are times of uncertainty and danger. They are times that threaten our core principles of freedom and the fabric of our society. It is time to make a defense of free thought. Illiberalism and a Defense of Free Thought A growing tide of illiberalism surrounds us from both sides of … Continue reading Defense of Free Thought in the Face of Illiberalism – The Pillars of Free Thought The post Defense of Free Thought in the Face of Illiberalism – The Pillars of Free Thought appeared first on A Marketplace for Ideas.
Feb 21 3:54pm Greg Mankiw
If I did not know the source, I might have thought that this report was from The Onion:The Trump administration is considering changing how U.S. trade deficits are calculated, a move that would make the deficit look larger on paper, the Wall Street Journal reported. People involved in the discussions told the Journal that the leading idea is to count “re-exports” — goods that are imported to the U.S., and then exported to a third country unchanged — as imports, but not exports.The change would inflate the trade deficit number, an important figure in trade negotiations and policy.
Feb 21 3:33pm macroblog
The U-3 unemployment rate has returned to prerecession levels and is close to estimates of its longer-run sustainable level. Yet other indicators of slack, such as the U-6 statistic, which includes people working part-time but wanting to work full-time (often...
Feb 21 3:24pm Brookings Topics - Economic Development
Now that tax filing season is well under way, millions of Americans are about to begin receiving refunds. For many low-income taxpayers, two key tax code provisions—the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC)—will keep them and their families from falling into poverty. What makes the EITC and ACTC special […] ...
Feb 21 11:06am Cafe Hayek
TweetI’m honored to be the guest of Bumper Hornberger and Richard Ebeling on today’s “Libertarian Angle” (from the Future of Freedom Foundation). The post The Libertarian Angle appeared first on Cafe Hayek.
Feb 21 10:25am Economy
Neel Kashkari is president and CEO of the Federal Reserve Bank of Minneapolis and a voting member of the Fed's policy-setting committee.
Feb 21 9:42am Brookings Topics - U.S. Economic Performance
What do we know so far about President Trump’s economic strategy? He has said he wants to get the economy “back on track” and create jobs that will put more money in people’s pockets. But instead of pursuing policies that mainstream economists have endorsed or following up on his commitment to rebuild America’s infrastructure or […] ...
Feb 21 8:46am The Incidental Economist
Such an important study in JAMA Internal Medicine. “Association of β-Blockers With Functional Outcomes, Death, and Rehospitalization in Older Nursing Home Residents After Acute Myocardial Infarction”: Importance Although β-blockers are a mainstay of treatment after acute myocardial infarction (AMI), these medications are commonly not prescribed for older nursing home residents after AMI, in part owing […]...
Feb 21 8:17am The Incidental Economist
How Would Republican Plans for Medicaid Block Grants Actually Work? That’s the topic of this week’s Healthcare Triage. This episode was adapted from an Upshot column I wrote. Links to sources and further reading can be found there. @aaronecarroll...
Feb 21 6:50am Cafe Hayek
TweetHere’s a letter to the Wall Street Journal: You describe Trump’s proposed scheme to artificially inflate U.S. trade-deficit figures as an attempt to “deceive” (“A Trump Statistical Trade Trick,” Feb. 21). Exactly. Counting goods shipped to other countries through the U.S. as U.S. imports but not as U.S. exports is simply fraudulent. If the Trump […] The post More On Team Trump’s Proposed Scheme to Use Fraudulent Trade Accounting appeared first on Cafe Hayek.
Feb 21 6:00am Economy
In a letter to House and Senate leadership, top manufacturing CEOs argued that the current tax system penalizes American factory workers.
Feb 21 5:30am On the Economy blog
Minority households have lower rates of homeownership, which may affect the national rate as the country becomes more diverse.
Feb 20 7:00pm VoxEU.org: Recent Articles
European banks have not recovered from the Global Crisis, in part due to heavy provisions for non-performing loans. This column argues that a comprehensive approach to the issue in Europe could address market inefficiencies and reduce bad loans to bearable levels. The establishment of a European scheme to securitise non-performing loans should form one of the next steps towards recovery.
Feb 20 6:39pm Econbrowser
If we count only the import side and not the export side of re-exports, as some in the Administration have suggested, we might as well go “whole hog” and redefine the trade balance completely: Let’s count imports, but not exports. Figure 1: The trade balance defined as net exports/GDP (blue), and the trade balance excluding […]...
Feb 20 5:00pm A Marketplace for Ideas
There is enough information in the public domain to conclude, with a high degree of confidence, that there is no illicit relationship between President Trump and the Russian government. Similarly, there is very likely no relationship of any consequence between associates of the President and the Russian government. We now believe that political motivations and … Continue reading No Illicit Relationship Between President Trump and the Russian Government – Here’s the Analysis The post No Illicit Relationship Between President Trump and the Russian Government – Here’s the Analysis appeared first on A Marketplace for Ideas.
Feb 20 4:06pm The Incidental Economist
So you’ll either know what Nerdfighteria is or not. The Venn diagram of those who know what it is will likely overlap largely with fans of Healthcare Triage. There’s a convention this weekend to celebrate it! NerdCon: Nerdfighteria is the first-ever official Nerdfighter convention and celebration of 10 years of nerdfighting. It is a giant […]...
Feb 20 3:28pm Cafe Hayek
TweetTrump and his protectionist trade triumvirate are not only ignorant of the basic tenets of economics, they are ignorant also of the basic tenets of accounting. Commerce-secretary designate Wilbur Ross, for example, routinely insists that “it’s ECON 101” that trade deficits reduce GDP. But he’s deeply mistaken. First, a U.S. trade deficit means that investments […] The post What Accounts for Trump’s Trade Tales? appeared first on Cafe Hayek.
Feb 20 1:54pm Cafe Hayek
TweetIn this short video, Deirdre McCloskey accurately identifies the purpose of trade and applauds its achievements. Here’s a choice quotation from the video: The purpose of the economy is not to make jobs. Jobs are infinite. We can make construction workers use teaspoons instead of shovels and that will make for more jobs. A pretty […] The post Deirdre McCloskey on Free Trade appeared first on Cafe Hayek.
Feb 20 5:30am On the Economy blog
Two aims of the Dodd-Frank Act were to improve large banks’ resiliency and reduce the impact of their failures or material weaknesses.
Feb 19 7:00pm VoxEU.org: Recent Articles
The revival of nationalism in western Europe, which began in the 1990s, has been associated with increasing support for radical right parties. This column uses trade and election data to show that the radical right gets its biggest electoral boost in regions most exposed to Chinese exports. Within these regions communities vote homogenously, whether individuals work in affected industries or not. ...
Feb 19 7:00pm VoxEU.org: Recent Articles
A majority of UK-based macroeconomists welcome the government’s new industrial strategy, but doubt that the government can deliver. This column, which presents the results of the latest Centre for Macroeconomics and CEPR survey, shows a large majority of economist think that the UK needs a new regional strategy to tackle inequality across different parts of the country.
Feb 19 4:34pm Cafe Hayek
TweetOver the past several months I’ve been told many times, in many different ways and places, that I and other free traders are “unrealistic,” and that Trump – who’s an alleged master of the art of the deal – will make Americans richer through his hard and skillful bargaining. Such claims are nonsense. Here’s a […] The post Protect Us from Those Who Would ‘Bargain Hard’ for Us appeared first on Cafe Hayek.
Feb 19 10:34am Econbrowser
One of the responses to the financial turmoil of 2008 was new legislation and regulation intended to prevent such a disaster from recurring. These measures include the Dodd-Frank Act of 2010 and the third international accord from the Basel Committee on Banking Supervision of 2010-11. But today there are powerful voices seeking to amend or […]...
Feb 19 8:03am Cafe Hayek
TweetAt EconLog, Scott Sumner rightly calls out Reihan Salam for getting the economics wrong in objecting former Labor-secretary nominee Andy Puzder. The specific target of Scott’s criticism is this passage from Salam: Puzder has also been an influential critic of minimum-wage hikes and overtime regulations, warning that such measures would force employers to replace low-wage […] The post Salam’s Criticism of Puzder Misses the Point appeared first on Cafe Hayek.
Feb 18 7:00pm VoxEU.org: Recent Articles
There is growing concern that dominant companies use patents strategically to keep competitors from entering their market. This column uses the landmark 1956 Consent Decree against Bell Labs to explore whether antitrust enforcement is an effective remedy to the problem. Results show that patents can indeed be used as an entry barrier for start-up firms, and that the compulsory licensing of patents can foster market entry and innovation. However, compulsory licensing is found to be ineffective in markets where dominant firms have other means of market foreclosure.
Feb 18 6:06pm The Incidental Economist
It can sometimes feel like there’s nothing we can do to improve population health. That’s just not true. This is Healthcare Triage News. For more information, go here. @aaronecarroll...
Feb 18 10:46am Paul Krugman
The math is not his friend.
Feb 18 1:25am Barron's Economic Beat
Cheered by Trumpian promises of lower taxes, fewer regulations, and cheaper health care, company owners get upbeat.
Feb 17 7:34pm Credit Trends from Moody's Analytics
The most recent past suggests that the high-yield spread is likely to move toward the value predicted by the VIX index unless high-yield default expectations climb meaningfully higher.
Feb 17 5:34pm Credit Trends from Moody's Analytics
The labor market and consumer spending show the ill effects of the decision to break from the EU.
Feb 17 3:27pm Neighborhood Effects
Over the past 60 or 70 years, levels of regulation in the United States have been on the rise by almost any measure. As evidence, in the year 1950 there were only 9,745 pages in the US Code of Federal Regulations. Today that number is over 178,000 pages. There is less information about regulation at […]...
Feb 17 3:19pm Cafe Hayek
TweetHere’s a letter to the Wall Street Journal: While touring a Boeing factory today in South Carolina, Trump exclaimed that “[w]hen there is a level playing field, and I’ve been saying this for a long time, American workers will always, always, always win” (“President Donald Trump Praises Boeing, Suggests More Plane Purchases Coming,” Feb. 17). […] The post Plane Ignorance appeared first on Cafe Hayek.
Feb 17 2:44pm Econbrowser
[Correction to title: it’s been pointed out that the National Guard will not necessarily be empowered to actually deport individuals; they can only have “authority to investigate, identify, apprehend, arrest, detain and conduct searches”. The actual deportation (transportation to port or border) would presumably be undertaken by other agencies. MDC 2/18 10:51AM Pacific] What are […]...
Feb 17 12:48pm Cafe Hayek
TweetJim Ziegler sent to me this long essay by Bruce Schneier. So far I’ve had time only to skim the essay. My skimming leaves me less than impressed, although a more-careful reading might change my assessment of the essay as a whole. But I’m quite certain that even ten careful re-reads will not cause me […] The post Mysterious Sentences appeared first on Cafe Hayek.
Feb 17 12:48pm Macro and Other Market Musings
My latest Macro Musings podcast is with Sebastian Mallaby. Sebastian is a senior fellow at the Council on Foreign Relations and a contributing columnist to the Washington Post. Previously, he worked with the Financial Times and the Economist magazine and is the author of several books. He joined me to talk about his latest book “The Man Who Knew: The Life and Times of Alan Greenspan”.This was a fascinating conversation throughout. You can listen to the podcast on Soundcloud, iTunes, or your favorite podcast app. You can also listen via the embedded player above. And remember to subscribe since more episodes are coming.
Feb 17 12:05pm Brookings Topics - Economic Development
There’s a profound shift under way in economic development, from overreliance on attracting jobs and talent from outside a region to greater emphasis on growing from within. Making that shift often involves formulating a new plan. But planning is just one piece of a much larger and more complex process of transforming economic development practices. And […] ...
Feb 17 11:44am The Incidental Economist
Emma Sandoe is a PhD student in Health Policy, Political Analysis at Harvard and a former spokeswoman for Medicaid at the Centers for Medicare & Medicaid Services. This week David Slusky and Donna Ginther released an NBER working paper which suggested that Medicaid expansion reduced the prevalence of divorce by 5.6\% among those aged 50-64. The thinking […]...
Feb 17 11:34am Credit Trends from Moody's Analytics
A look at next week's economic indicators which include new and existing home sales.
Feb 17 9:46am The Incidental Economist
There’s just so much S#!T in the news every day that important stuff seems to fly under the radar. Like this: A federal appeals court cleared the way on Thursday for Florida doctors to talk to their patients about gun safety, overturning a 2011 law that pitted medical providers against the state’s powerful gun lobby. […]...
Feb 17 8:44am Brookings Topics - Housing and Mortgage Markets
What if houses were mainly a consumption good rather than an investment? The New York Times article on economists Ed Glaeser and Joe Gyourko’s paper points to how zoning regulations may be taxing development more than is warranted by the benefits. In Immigration in France: Myths and Reality, E. M. Mouhoud exposes 15 “lies” about […] ...
Feb 17 1:04am Econbrowser
Judy Shelton argues that “Free trade needs sound money”: …[T]he time has come to develop a comprehensive approach to international monetary reform compatible with genuine free trade under free-market conditions. If markets are to function properly, money needs to convey accurate price signals; that won’t happen as long as governments can manipulate exchange rates. As […]...
Feb 16 7:35pm Cafe Hayek
TweetHere’s a passage from page 18 of volume 1 of Roger Backhouse’s forthcoming (in May) biography of Paul Samuelson (1915-2009): Founder of Modern Economics: Paul A. Samuelson: His remark that he could see the Keynesian multiplier at work when he was on the farm [that he often visited as a boy] is clearly a later […] The post Wartime Prosperity? appeared first on Cafe Hayek.
Feb 16 7:00pm VoxEU.org: Recent Articles
The IMF has just released its self-evaluation of its Greek lending, in which it admits to many mistakes. This column and argues that the report misses one important error – reliance on the Debt Sustainability Analysis – but notes that the IMF’s candour should be a model for the other participants in the lending, namely, the European Commission and the ECB.
Feb 16 5:34pm Credit Trends from Moody's Analytics
Manufacturing surveys are on a hot streak, while the trend in housing starts continues to improve.
Feb 16 5:34pm Credit Trends from Moody's Analytics
Several sectors and firms have not joined in the broader narrowing of corporate credit spreads.
Feb 16 5:13pm Brookings Topics - U.S. Economic Performance
Although Donald Trump claims that his forthcoming tax plan will be “phenomenal,” he is in truth not likely to propose something really new. Before the election, Trump put forth a broad tax plan and then a narrower plan. But even the narrower plan created a budget deficit of roughly $3 trillion to $4 trillion over 10 […] ...
Feb 16 1:25pm Multiplier Effect
REGISTRATION IS NOW OPEN: April 18–19, 2017 Levy Economics Institute of Bard College Blithewood Annandale-on-Hudson, New York 12504 The 2017 Minsky Conference will address the implications of the new administration’s “America First” policies, focusing on the outlook for trade, taxation, fiscal, and financial regulation measures to generate domestic investments capable of moving the growth rate beyond […]...
Feb 16 11:52am Brookings Topics - Economic Development
The Africa Growth Initiative (AGI) Markets Monitor aims to provide up-to-date financial market and foreign exchange analysis for Africa watchers with a wide range of economic, business, and financial interests in the continent. Following the 2016 updates, the February 2017 update continues tracking the diverse performances of African financial and foreign exchange markets through the […] ...
Feb 16 11:01am Economy
Household debt in the U.S. totals a staggering $12.58 trillion, a level not seen since 2008, the Fed says.