Economics Roundtable

March 2017 Fed Funds Rate

What is the effect of a 0.25% change in the Fed Funds rate?.

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March 2017 Payroll Employment

Payroll employment has not grown impressively since 2000. Some baby-boomers retired, but that does not totally account for this graph.

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May 2014 Payroll Employment

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

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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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The Economics Roundtable is sponsored by EconModel.

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

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Moneyness (JP Koning)

April 10, 2017, 1:33 am, 1736264

 Did Indian PM Narendra Modi get the idea for the recently-executed demonetization by watching old episodes of M*A*S*H, a 1970s hit TV show set in the Korean War?

March 26, 2017, 11:33 am, 1731814

Somalia has long played host to one of the world's strangest monetary phenomenon, a paper currency without a central bank. I explored the idea of Somalia's "orphaned currency" more fully four years ...

March 15, 2017, 1:33 pm, 1728913
"One dollar bill," watercolour by Adam Lister (source)
R3, a company specializing in distributed ledger technology, has just posted a paper I ...

March 8, 2017, 1:33 am, 1726631

David Andolfatto and Larry White have been having an interesting debate on the public finance case for having a large (or small) Federal Reserve balance sheet. In this post ...

February 28, 2017, 5:33 pm, 1724344
Whenever I try to come up with a metaphor for the monetary and banking system I think about the 2010 film Inception, ...

February 21, 2017, 9:33 pm, 1722021

This continues a series of posts (1, 2, 3) I've been writing that tries to improve on Indian PM Narendra Modi's clumsy demonetization, or what I prefer to ...

February 9, 2017, 1:33 pm, 1718353

Donald Trump doesn't like the strong dollar, but is there anything he can do about it?

Last month Donald Trump told the Wall Street Journal that American companies can’t compete "because ...

January 30, 2017, 11:33 am, 1714910

The topic of euro breakup has slowly been trickling back in the news, especially with the potential for Italy leaving the currency union, a so-called Italexit. In this post I want to ...

January 17, 2017, 1:33 am, 1711018

Earlier this month I criticized the architects of India's recent note demonetization for not using the traditional overstamping technique for replacing large quantities of banknotes.

January 15, 2017, 1:33 am, 1710637

 In a recent podcast with Robert Hall, Russ Roberts asks:

"If the Fed was so aggressive, why didn't we have inflation? And does that mean that Milton Friedman and ...