Economics Roundtable

May 2014 Payroll Employment

After 76 months, we finally got back to the prerecession level of payroll employment.

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Jobs

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 .


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Graph-of-the-Year Candidates

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.


Remember M1?

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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EconModel

The Economics Roundtable is sponsored by EconModel.

The Classic Economic Models cover micro, macro, and financial markets.


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VoxEU

"Research-based policy analysis and commentary from Europe’s leading economists”


September 15, 2014, 8:44 pm, 1335449

Using aggregate data can bias estimates of exchange rate pass-through by ignoring heterogeneity in price adjustment across sectors. This column uses micro-level price data to estimate pass-through for South Africa, using actual CPI weights to reflect changes in consumption bundles. The result is a micro-based estimate of pass-through with aggregation ...


September 14, 2014, 8:44 pm, 1334780

The international financial system is not working fine and reforms of regional and global institutions are much needed. This column discusses some of the transformations that the IMF could implement in order to keep pace with the changes in the world economy. One problem for the credibility of the IMF ...


September 14, 2014, 8:44 pm, 1334779

Online markets have unusual characteristics that allow testing whether the law of one price holds. This column uses a unique dataset to demonstrate that the frictions in the price adjustments in online markets are indeed lower. The authors find that in online markets the price change is smaller, the duration ...


September 13, 2014, 8:44 pm, 1334469

Multinational companies’ ability to pay little corporate income tax has grabbed headlines recently. This column argues that the details of international tax rules matter for macroeconomic performance – especially in low-income countries. This emphasises the importance of the G20–OECD Action Plan on Base Erosion and Profit Shifting. However, dealing properly ...


September 13, 2014, 8:44 pm, 1334468

Due to the adoption of inflation targeting and floating exchange rates, and the elimination of capital controls, exchange rate pass-through – the transmission of exchange rate movements to changes in the domestic price level – has become an increasingly important issue in developing and emerging market economies. This column discusses ...


September 12, 2014, 8:44 pm, 1334242

There is a growing consensus that austerity is contributing to the Eurozone’s macroeconomic malaise, but also that spending cuts are needed in the long run to achieve fiscal sustainability. Some commentators have advocated a temporary tax cut financed by unsterilised ECB purchases of long-term public debt, accompanied by a commitment ...


September 12, 2014, 8:44 pm, 1334241

In the aftermath of the global financial crisis new patterns of reserve hoarding have emerged. This column identifies structural changes in international reserve accumulation. Emerging markets with higher savings rates tend to use higher buffers of reserves, partially accounting for the higher levels of reserves in east Asia compared to ...


September 12, 2014, 8:45 am, 1333823

This Vox EU Course Companion, the first in the series, is a collection of carefully selected Vox columns designed to supplement Mankiw’s Macroeconomics textbook. Vox Course Companions provide relevant examples of economic theory in action and offer thought-provoking perspectives on arguments that come up time and again in exam-style questions. ...


September 12, 2014, 8:45 am, 1333822

This column introduces the first in a new series – VoxEU Course Companions.  Designed to supplement Mankiw’s Macroeconomics textbook, this Course Companion brings together carefully selected Vox columns to provide relevant examples of economic theory in action and offer thought-provoking perspectives on arguments that come up time and again in ...


September 11, 2014, 8:44 pm, 1333582

As the most acute phase of the Eurozone crisis is over, the current-account balances of France, Italy, and Spain have improved. This column warns against complacency about this improvement, pointing at some structural factors that impede growth and damage competitiveness. Resources should be relocated towards the tradeable sectors and to ...