May 2014 Payroll Employment
After 76 months, we finally got back to the prerecession level of payroll employment.
Click on the image to get a bigger version.
The best summary of the state of our economy is the graph (below) of employment as a fraction of population for people over 16 years old. The decrease is large, but the most troubling feature of the graph is the flat trend .
Donald Marron likes European interest rates. Click on the image to get a bigger version. Can you find three distinct subperiods?
Brad DeLong favors the U.S. gdp gap.
Money Supply M1 growth is now over 20% per year over a 12 month lag. M1 growth has touched 20% before, but not with excess reserves of $1.6 trillion. Where is M1 headed?
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Economist’s View (Mark Thoma)
In response to Paul Krugman's recent post, "The Triumph of Backward-Looking Economics" -- no surprise here -- there is disagreement from Steve Williamson. So let me offer this from Blanchard and Johnson's intermediate macroeconomics text discussing this issue. But first, a brief review of the controversy. ...
Simon Wren-Lewis says:
Corbyn, QE and financial interests: ... I want to talk about Quantitative Easing (QE). The basic idea behind QE is that by buying long term assets at a time when their price is high (interest rates are low) to make their price even higher (interest rates even ...
This is a question I have wanted to see an answer to for a long time. What is the minimum efficient scale for financial institutions? This is an important question with respect to breaking up large banks into smaller entities. Some have argued, based on very little compelling evidence as ...
This is from "Has the U.S. Economy Become Less Interest Rate Sensitive?," by Jonathan L. Willis and Guangye Cao of the KC Fed:
... IV. Conclusion Although monetary policy is an important tool for promoting price and economic stability, its efficacy can change over time. This article investigates the interest ...
The conclusion to "Leveraged bubbles," by Ă’scar JordĂ , Moritz Schularick, and Alan Taylor:
... In this column, we turned to economic history for the first comprehensive assessment of the economic risks of asset price bubbles. We provide evidence about which types of bubbles matter and how their economic costs differ. ...
In response to this from Paul Romer:
For now, Iâ€™ll go ahead with what I hope is ...
Everyone seems to be posting the syllabus for the graduate courses they are teaching this fall. Mine is simple. In my Monetary Theory and Policy course we are going to go through this book by Jordi Gali (don't tell anyone I actually know this stuff):
From Vox EU:
Dynasties and development, by Jan Frederick P. Cruz and Ronald U Mendoza: The possibility of a showdown between Hillary Clinton and Jeb Bush in the US Presidential polls may have some political pundits salivating, but perhaps many more Americans wondering. Is political power becoming too concentrated ...