econbrowser.com - 2/8/2009
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Or, how come you used to say that if consumers don't save more, it will wreck the economy, and now you say, if consumers do save more, it will wreck the economy?
For the record, I am certainly among those who had been suggesting that America's low saving rate was a significant problem. Let me ...
online.wsj.com - 2/10/2009
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online.wsj.com —
GARY S. BECKER and KEVIN M. MURPHY How
much will the stimulus package moving in Congress really...
stimulate the economy? The evaluations to date have been incomplete, so we looked at the likely stimulative effect from the spending parts of the House and ...
(more)
Opinion: There's No Stimulus Free Lunch
calculatedriskblog.com - 2/4/2009
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calculatedriskblog.com —
2009 will be a grim economic year. The
unemployment rate will rise all year, house prices will...
fall, commercial real estate (CRE) will get crushed ... but there might be a few rays of sunshine too. Look at these three charts of Cliff Diving: Click ...
(more)
Looking for the Sun
krugman.blogs.nytimes.com - 2/3/2009
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krugman.blogs.nytimes.com —
Yesterday's report on consumer incomes, spending, and saving
showed a sharp rise in the personal savings rate;...
it also showed a decline in nominal personal incomes, the third in a row, reflecting the weakening economy. I don't know who else has made ...
(more)
Paradox of thrift
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Getting to Recovery
EconLog: Library of Economics and Liberty —
James Hamilton writes , I have in my research instead stressed technological frictions . For example, when spending on cars abruptly falls, there is a physical, technological challenge with getting the specialized labor and capital formerly employed in manufacturing cars into some alternative activity. In my mind, it is a mistake to pretend that any federal program is capable of immediately re-employing those resources into an alternative, equally productive enterprise. More fundamentally, I have suggested that our present situation is as if someone had quite ...
The paradox of thrift
IEHI Feed: The Hedge Fund Implode-o-Meter —
The paradox of thrift (econbrowser.com) Search Enter your search terms Web HF Submit search form 2009-02-08 " Or, how come you used to say that if consumers don't save more, it will wreck the economy, and now you say, if consumers do save more, it will wreck the economy?" ...
Sunday links: worst decade ever
Abnormal Returns —
... “It is one thing to identify a higher national saving rate as the long-term goal, and quite another thing to try to get there overnight in the form of a sudden drop in consumption spending.” (Econbrowser also ...
Jim Hamilton on Real Shocks
Marginal Revolution —
Hamilton hits the nail on the head: ...[I] disagree with some of my colleagues is in their presumption that wage or price rigidities are the core frictions that are responsible for producing the present situation. I have in my research instead ...
Is Saving Good?
The Baseline Scenario —
... , who wrote a non-technical explanation of the sort I usually do in my Beginners posts. Read that first. (Cowen adds some semi-technical notes that you may or may not understand.) James Hamilton then gives a technical explanation, but by “technical” here I’m only referring to first-year undergraduate macroeconomics, so most people should be able to follow. Read that second, at least through the second paragraph after the second graph. ...
Labour skills and sticky wages: Is the problem worse now?
The visible hand in economics —
... This indicates that the specialisation of labour actually reduces labour’s ability to adjust to structural changes in the economy. These are what James Hamilton calls technological frictions (ht ...
Readings
Paul Kedrosky's Infectious Greed —
... (Telegraph) Milken Institute China Indicators (Milken) One in eight lenders may fail, says RBC (Reuters) Bill Bernstein was kidnapped by hedge fund managers and forced to play rock paper, scissors (EfficientFrontier) China #1 in Auto Sales, but It's Not Sustainable (ChinaStakes) Large Hadron Collider to re-start in September (New Scientist) The paradox of thrift (Econbrowser) Good anti-pundit rant (Cassandra Does Tokyo) WTO ...
Divergent Unemployment Rates
Economist's View —
... Inflation risk? If significant
structural issues are in play, perhaps we are fooling ourselves about the low risk
of inflation. Consider
Jim Hamilton: ...
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