Economics Roundtable

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?

Click on the chart for a larger version.


The Economics Roundtable is sponsored by EconModel.

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

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Crooked Timber

"Out of the CROOKED TIMBER of humanity, no straight thing was ever made.”

October 6, 2015, 4:04 am, 1553680

October 6, 2015, 4:04 am, 1553681

I have a piece up on ABC (~ UK BBC, not US ABC) discussion blog The Drum, making the point that most of the market value of a Bitcoin reflects the electricity wasted in the calculations needed to “mine” it, with the obvious disastrous implications for ...

October 5, 2015, 4:04 am, 1553112


This, you might think, qualifies as another in the series “Short Answers to Silly Questions”. But a Brookings Paper study by William G. Gale, Melissa S. Kearney, and Peter R. Orszag reaches the opposite conclusion.

The study looks at increasing the top marginal tax rate (currently 39.6, applicable to incomes ...

September 25, 2015, 10:04 pm, 1549472

Here’s another draft extract from my book-in-progress, Economics in Two Lessons, looking at income distribution. The entire draft section on this topic is available here. And the introduction, describing the general approach of the book is here.

Praise is welcome, and useful criticism even more so. As a reminder, ...

September 24, 2015, 6:04 am, 1548440

The recent news about VW has made me question some pretty fundamental things. I think cheating on this scale required, not just massive amounts of fraud, but a massive amount of complicity. No one at a lower level in the organization would take on the risk of freelancing a ...

September 15, 2015, 12:04 pm, 1544092

Over at the Monkey Cage, our very own Henry Farrell sets out how Peter Mair’s brilliant Ruling the Void helps explain Corbyn’s recent triumph. A shout-out too for my friend Martin O’Neill’s treatment of Corbyn’s victory at Al Jazeera.

September 7, 2015, 4:04 am, 1540089

Here’s another excerpt from my book-in-progress, Economics in Two Lessons. Rather than work sequentially, I’m jumping between:

Lesson 1: Market prices reflect and determine opportunity costs faced by consumers and producers. and Lesson 2: Market prices don’t reflect all the opportunity costs we face as a society.

In the section over ...

September 3, 2015, 12:04 am, 1538392

If Hungary can forget after 25 years why a fence on its border is shameful, disgraceful, and disgusting then I guess we shouldn’t be surprised that the Czech police may forget after 70 years that marking people with numbers on their arms for identification ...

August 26, 2015, 8:04 am, 1534323

Another extract from my book-in-progress, Economics in Two Lessons. You can find a draft of the opening sections here. To recap, the idea of the book is to begin with the idea that market prices represent opportunity costs for the households and business who face them (Lesson 1), and ...

August 22, 2015, 12:04 am, 1532559

One of the big benefits of blogging for me is the chance to try out my ideas on an audience I couldn’t easily reach (or at least hear back from) in any other way. That’s particularly true when I’m writing a book, which is always a difficult process for me. ...