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Tag Archives: Links

Links (9/25/19)

The Cost of America’s Oligopoly Problem - ProMarket An innovative new study finds substantial, increasing deadweight losses resulting from oligopolistic behavior and points to the important role that startup acquisitions—particularly by large tech firms—played in driving this trend. Helicopter money as a policy option - VoxEU With persistently weak economic conditions becoming the norm in Europe, economists are considering increasingly unconventional policy options. One tool...

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Links (9/13/19)

How we make decisions depends on how uncertain we are - EurekAlert!A new Dartmouth study on how we use reward information for making choices shows how humans and monkeys adopt their decision-making strategies depending on the uncertainty of information present. The results of this study illustrated that for a simple gamble to obtain a reward, when the magnitude or amount of the reward is known but the probability of the reward is unknown and must be learned, both species will switch their...

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Links (8/23/19)

I have been traveling and got a bit distracted by shiny objects. Here are a few links (in no particular order): Whither Central Banking? - Lawrence H. Summers & Anna StansburyIn an environment of secular stagnation in the developed economies, central bankers’ ingenuity in loosening monetary policy is exactly what is not needed. What is needed are admissions of impotence, in order to spur efforts by governments to promote demand through fiscal policies and other means. From Voodoo...

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Links (8/08/19)

Irving Fisher Demolishes the Loanable-Funds Theory of Interest - Uneasy MoneyIn some recent posts (here, here and here) I have discussed the inappropriate application of partial-equilibrium analysis (aka supply-demand analysis) when the conditions under which the ceteris paribus assumption underlying partial-equilibrium analysis are not satisfied. The two examples of inappropriate application of partial equilibrium analysis I have mentioned were: 1) drawing a supply curve of labor and...

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Links (7/22/19)

Why Critics of a More Relaxed Attitude on Public Debt Are Wrong - Blanchard and UbideBoth of us have recently developed arguments for a more relaxed attitude toward public debt and deficits (for example, this address by Blanchard at the European Central Bank Policy Forum, this joint discussion at PIIE, and this essay by Ubide on Vox). Not surprisingly, several counterarguments have arisen, some of which we accept, some of which we don’t. This blog addresses two arguments that we reject....

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Links (7/15/19)

Why Is Inflation Low Globally? - FRBSF A hot economy eventually boosts inflation. Such is the simple wisdom of the Phillips curve. Yet inflation across developed countries has been remarkably weak since the 2008 global financial crisis, even though unemployment rates are near historical lows. What is behind this recent disconnect between inflation and unemployment? Contrasting the experiences of developed and developing economies before and after the financial crisis shows that...

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Links (7/9/19)

Thumbs Down to Facebook’s Cryptocurrency - Joseph E. StiglitzOnly a fool would trust Facebook with his or her financial wellbeing. But maybe that’s the point: with so much personal data on some 2.4 billion monthly active users, who knows better than Facebook just how many suckers are born every minute? Trump Is Losing His Trade Wars - Paul KrugmanDonald Trump’s declaration that “trade wars are good, and easy to win” will surely go down in the history books as a classic utterance — but not in...

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Links (6/29/19)

Opportunity cost, MMT and public spending - Crooked Timber ... In the “chartalist” reasoning underlyng MMT, the fact that governments can issue their own sovereign currency means that there is no need to “finance” public spending by taxation; rather taxation is a tool used to manage aggregate demand so as to keep the economy fully employed but not at a point where excess demand creates inflation. That (essentially correct) position can easily slide into the (only subtly different, but...

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Links (6/23/19)

Notes on Excessive Wealth Disorder - Paul Krugman In a couple of days I’m going to be participating in an Economic Policy Institute conference on “excessive wealth disorder” — the problems and dangers created by extreme concentration of income and wealth at the top. I’ve been asked to give a short talk at the beginning of the conference, focusing on the political and policy distortions high inequality creates, and I’ve been trying to put my thoughts in order. So I thought I might as well...

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Links (6/17/19)

The Decline of American Journalism Is an Antitrust Problem - ProMarket Weak antitrust enforcement set the stage for Facebook and Google to extract the fruits of publishers’ labor. We won’t be able to save journalism and solve our disinformation problem unless we weaken monopolies’ power. Three Recommended Changes to U.S. Currency Policy - Brad Setser I have a new Policy Innovation Memo that recommends three changes to U.S. currency policy, and specifically, three changes to the U.S....

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