Economics Roundtable

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.


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 .


Click on the image to get a bigger version.


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.


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- Recent Entries


August 29, 2014, 9:33 am, 1326539

Apparently, ten out of ten premiers (13 out of 13 if we count the territories) can agree that Canada is suffering from a “fiscal imbalance” between Ottawa and the provinces. At their annual meetings, which are wrapping up in Charlottetown today, the provincial premiers are arguing that since ...


August 29, 2014, 9:23 am, 1326538
QE, dead cat bounces, margin calls, hi-frequency trading, derivatives, hedging and yields.The irrepressible John Lanchester tries to de-mystify the language of money in his new book! Here is a report on the subject from BBC Newsnight.


August 29, 2014, 9:23 am, 1326537
Here is an important example of regulatory control of utility businesses with regional natural monopoly power. Ofwat is requiring regional water companies to cut their bills in real terms for the next five year pricing regime. Regulatory agencies are often accused of failing to be sufficient strong with suppliers leading ...


August 29, 2014, 9:03 am, 1326500

Consumer prices rose modestly in July, a sign inflation remains in check as the Federal Reserve winds down its bond-buying program.

The price index for personal consumption expenditures–the Fed’s preferred inflation measure–increased 1.6% in July from a year earlier, the Commerce Department said Friday. Excluding volatile food and energy prices, so-called ...


August 29, 2014, 9:03 am, 1326499

August 29, 2014, 9:03 am, 1326498

Why didn't François Hollande reverse austerity policies in France?:

The Fall of France, by Paul Krugman, Commentary, NY Times: François Hollande, the president of France since 2012, coulda been a contender. He was elected on a promise to turn away from the austerity policies that killed Europe’s brief, inadequate ...


August 29, 2014, 9:03 am, 1326497
The BEA released the Personal Income and Outlays report for July:

Personal income increased $28.6 billion, or 0.2 percent ... in July, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) decreased $13.6 billion, or 0.1 percent.
...
Real PCE -- PCE adjusted to remove ...


August 29, 2014, 8:04 am, 1326493
(August 29, 2014 06:38 AM, by Art Carden) Another semester is upon us, and in my principles of macroeconomics class at Samford we spent the first week reading Frederic Bastiat's What is Seen and What is Not Seen and Leonard Read's I, Pencil. In class yesterday we considered... (0 COMMENTS)


August 29, 2014, 8:04 am, 1326492
(August 29, 2014 07:01 AM, by Alberto Mingardi) One of the many treats of Econlib are the articles of Anthony de Jasay. Mostly renowned for his remarkable book The State, De Jasay is among the most brilliant libertarian political thinkers. This month he has a profound article on... (0 COMMENTS)


August 29, 2014, 8:04 am, 1326491

August 29, 2014, 8:04 am, 1326490
(Don Boudreaux)

… is from page 269 of Matt Ridley’s 2010 book, The Rational Optimist; (the quotation is from Terence Kealey’s 2006 book, Sex, Science and Profits; the OECD study is here):

A large study by the Organization for Economic Co-operation and Development concluded that government spending on R&D ...


August 29, 2014, 7:33 am, 1326487

Everything--and I do mean everything--you're likely to want to know about the use of "the" in names of rock groups.


August 29, 2014, 7:33 am, 1326486

At least for right now, ISIS is practically defenseless against air attack.

Of course, that could change.


August 29, 2014, 7:23 am, 1326485
Looking for a 15 - 20minute activity to start your first lesson with new AS level students over the next week or so? We've got a nice introductory quiz for you!No doubt you're getting your lesson ready - what is the economic problem? What is scarcity? What isOpportunity Cost? What ...


August 29, 2014, 7:03 am, 1326471

August 29, 2014, 6:44 am, 1326470
As the summer comes to a close and the election season heats up, U.S. economic data remain muddled. WSJ's Sudeep Reddy explains how Democrats and Republicans may use this information to communicate to voters on the health of the economy.


August 29, 2014, 6:44 am, 1326469
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August 29, 2014, 6:05 am, 1326468

Here is a new paper by Steve Brito, Ana Corbacho, and Rene Osorio Rivas, it seems the answer is yes:

This working paper studies the effect of remittances from the United States on crime rates in Mexico. The topic is examined using municipal-level data on the percent of household ...


August 29, 2014, 5:33 am, 1326465

I don't think it's a "secret". Here in NC they're advertising that bad boy on TV a lot.

The $10 sandwich has2 chicken tenders,1.5 oz. of roast turkey,1.5 oz. of ham,1 slice of Swiss cheese,1.5 oz. of corned beef,1.5 oz. brisket,1.5 oz. of Angus steak,1 slice of ...


August 29, 2014, 5:03 am, 1326434

 

An employee operates a crane to move a roll of sheet aluminum on the production line at the Akao Aluminum Co. plant in Tokyo. Bloomberg News


August 29, 2014, 5:03 am, 1326433

What if you could hack your brain to boost your IQ? Would you do it? How can you do it?

Garth Sundem, author of


August 29, 2014, 4:44 am, 1326432
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August 29, 2014, 4:04 am, 1326431

We now come to the exciting conclusion of Thomas Piketty’s monumental work, Capital in the Twenty-First Century. This is not an exaggeration: the final part of the book contains findings that I consider to be simply bombshells in their significance.

In Part 4, “Regulating Capital in the Twenty-First Century,” Piketty calls ...


August 29, 2014, 3:33 am, 1326428
Consumer spending in Japan slumped in June because of a tax hike pushed through by Prime Minister Shinzo Abe. Economists claimed it would be temporary and spending would quickly recover thanks to inflation.

Let's take a look at what actually happened.

Japanese Household Spending Slumps 5.9%


August 29, 2014, 3:23 am, 1326427

Photo Credit: James Wheeler

I’m going to show you two portfolios — I’m not initially going to tell you much about either one, but then you can consider which one you might like better.  Here’s portfolio A:


August 29, 2014, 3:03 am, 1326388

 

An employee operates a crane to move a roll of sheet aluminum on the production line at the Akao Aluminum Co. plant in Tokyo. Bloomberg News


August 29, 2014, 2:05 am, 1326387

It seems to be economic policy orientation toward Europe or Russia, and not either language or ethnicity.  Here is a new paper by Timothy Frye:

Language, ethnicity, and policy orientation toward Europe are key cleavages in Ukrainian politics, but there is much debate about their relative importance. To isolate ...


August 29, 2014, 1:33 am, 1326386

From the western NC best kept secret list:

Laughing Seed Cafe, Asheville

Not so long ago, eating at a vegetarian restaurant could be an ascetic experience even for vegetarians. But all those meat eaters have no idea what they’re missing when they walk past the Laughing Seed Cafe. It distills much ...


August 29, 2014, 1:23 am, 1326385
After stumbling across a couple of good movie poster makersvia the @ukedchat Twitter feed, I decided to knock a couple of quick ones up to brighten up the walls of my classroom. You can make your own resources here: www.fakemovieposter.com orhttp://bighugelabs.com/poster.phpYou can also download the two that I made below ...


August 29, 2014, 12:34 am, 1326347

The “Lost Decades” narrative in Japan and the US has kept the drive for more government intervention going for a long time.


August 29, 2014, 12:34 am, 1326346

Many economics textbooks claim that a function of money is to measure the value of goods. In fact, the value an individual attaches to a given sum of money or to any kind of good (including gold) is based on a subjective judgment ...


August 28, 2014, 10:45 pm, 1326330
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August 28, 2014, 10:04 pm, 1326328
(August 28, 2014 09:31 PM, by Scott Sumner) Tyler Cowen recently linked to a good article by Francis Fukuyama: The two dominant American political parties have become more ideologically polarized than at any time since the late nineteenth century. There has been a partisan geographic sorting, with... (0 COMMENTS)


August 28, 2014, 10:04 pm, 1326327
(August 29, 2014 12:00 AM, by Bryan Caplan) When I was in high school, Murray Rothbard's analysis of government ownership was a revelation. Why was my high school a den of waste, incompetence, and stagnation? Because it was a government enterprise!On the free market, in short, the consumer... (0 COMMENTS)


August 28, 2014, 9:03 pm, 1326295

A persistent price gap between existing homes and newly built homes has given the former an advantage over the latter in recent months. But some economists say that gap will soon will start to narrow.

The latest Commerce Department data show new-home sales in July declined 2.4% ...


August 28, 2014, 9:03 pm, 1326297

During Japan’s long, debilitating bout with deflation, basic market mechanisms broke down.

Fixing the machinery requires more than the traditional stimulus policies deployed to pump up growth, says Haruhiko Kuroda.

“A ‘visible hand,’ is ...


August 28, 2014, 9:03 pm, 1326296

August 28, 2014, 9:03 pm, 1326293
Applicants wait in line at a job fair in Manhattan. Getty Images

More Americans are bouncing back after losing their jobs, and fewer people are accepting a ...


August 28, 2014, 9:03 pm, 1326294

U.S. home prices aren’t rising as fast as they were a year ago following a slowdown in sales triggered by last year’s jump in mortgage rates.

The latest S&P/Case-Shiller index shows that home prices rose 6.2% in June from a year earlier. The big questions now are whether, when, and at ...


August 28, 2014, 9:03 pm, 1326291
Bloomberg

Former Federal Reserve Chairman Ben Bernanke, a prominent student of the Great Depression, contends that the 2008 financial crisis was actually worse than its 1930s counterpart.

Mr. Bernanke is quoted making the statement in ...


August 28, 2014, 9:03 pm, 1326292

One of the most popular and unusual charts in labor market economics is the Beveridge Curve,  which tracks the relationship between job openings and the unemployment rate. The curve shows that, in general, as the unemployment rate rises the number of job openings falls, and vice versa. But a


August 28, 2014, 9:03 pm, 1326287

By now, anyone following the debate over income inequality in the U.S. has likely seen the rise of income inequality charted over the years or over decades. But how about income inequality hour by hour?


August 28, 2014, 9:03 pm, 1326286

The Federal Reserve has helped put the federal budget on a more sustainable path by holding interest rates very low and making big payments to the U.S. Treasury, according to a new report from the Congressional Budget Office.

The CBO said Wednesday the federal budget deficit over the next decade ...


August 28, 2014, 9:03 pm, 1326288

The Wall Street Journal’s Daily Report on Global Central Banks for Wednesday, August 27, 2014
Sign up for the newsletter: http://on.wsj.com/grandcentralsignup.

“September
and October of 2008 was the worst financial crisis in global history, including the Great Depression.” –Ben Bernanke


August 28, 2014, 9:03 pm, 1326290
Bummed out by the low quality of official economic data. Agence France-Presse/Getty Images

India is scheduled to release its latest quarterly data on economic growth on ...


August 28, 2014, 9:03 pm, 1326285
Getty Images

Proposed requirements for an obscure, but widely used, corner of the mortgage market would protect Fannie Mae and Freddie Mac


August 28, 2014, 9:03 pm, 1326289
Stacks of containers at the Port of Bangkok in Thailand. Bloomberg News

Thailand’s central bank governor Wednesday said he is reassessing what to do ...


August 28, 2014, 9:03 pm, 1326278
Protestors and police officers are seen in smoke during a demonstration outside the Russian Consulate in the southeastern Ukrainian city of Kharkiv on August 28, 2014.


August 28, 2014, 9:03 pm, 1326280

The Federal Reserve Bank of Kansas City launched Thursday a new gauge to track labor market conditions, which signaled in its first outing a hopeful outlook for hiring in the U.S. economy.

The bank said that its Kansas City Fed Labor Market Conditions Indicators activity measure moved to -0.6 in July, ...


August 28, 2014, 9:03 pm, 1326279

Former Secretary of State Hillary Clinton, or any other potential Democratic candidate in the next presidential race, may need to have a plan to close the revolving door of Democratic economic advisers if she hopes to gain stronger support from America’s labor movement.


August 28, 2014, 9:03 pm, 1326284

Diversity is turning out to be a key ingredient of a healthy and durable regional economy.

Unemployment has fallen sharply across the U.S. over the past year, sitting at 6.5% in ...


August 28, 2014, 9:03 pm, 1326281

August 28, 2014, 9:03 pm, 1326282
Toyota Motor Corp. vehicles. Bloomberg News

If you are wondering why Japan’s exports are languishing despite the yen’s weakness, take a quick look at monthly production data ...


August 28, 2014, 9:03 pm, 1326283

The latest reading on consumer confidence, released Tuesday by the Conference Board, shows households are as upbeat about the economy as they were in 2007, as the last expansion was about to end.

But that good cheer hasn’t translated to stronger spending. As has been the case throughout most of ...


August 28, 2014, 9:03 pm, 1326277
Friday:
• At 8:30 AM ET, Personal Income and Outlays for July. The consensus is for a 0.3% increase in personal income, and for a 0.1% increase in personal spending. And for the Core PCE price index to increase 0.2%.

• At 9:45 AM, the Chicago Purchasing Managers Index ...


August 28, 2014, 7:33 pm, 1326274
The NY Times doesn't offer much of its space to economists not named Krugman. Yes, I read the Business Section on Sunday but those pieces are short and often lack punch. Today, the NY Times allocates some web space to humanities professors to see what they have to ...


August 28, 2014, 7:03 pm, 1326227
Protestors and police officers are seen in smoke during a demonstration outside the Russian Consulate in the southeastern Ukrainian city of Kharkiv on August 28, 2014.


August 28, 2014, 6:45 pm, 1326226
David Wessel: A guide to understanding the federal deficit and the Congressional Budget Office's updated numbers.


August 28, 2014, 6:45 pm, 1326225
Should Hillary Clinton run for president, she may need to close the revolving door of Democratic economic advisers if she hopes to gain stronger support from America's labor movement.


August 28, 2014, 6:45 pm, 1326224
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August 28, 2014, 5:03 pm, 1326160

By now, anyone following the debate over income inequality in the U.S. has likely seen the rise of income inequality charted over the years or over decades. But how about income inequality hour by hour?


August 28, 2014, 5:03 pm, 1326158
Getty Images

Proposed requirements for an obscure, but widely used, corner of the mortgage market would protect Fannie Mae and Freddie Mac


August 28, 2014, 5:03 pm, 1326159

The Federal Reserve has helped put the federal budget on a more sustainable path by holding interest rates very low and making big payments to the U.S. Treasury, according to a new report from the Congressional Budget Office.

The CBO said Wednesday the federal budget deficit over the next decade ...


August 28, 2014, 5:03 pm, 1326156

The latest reading on consumer confidence, released Tuesday by the Conference Board, shows households are as upbeat about the economy as they were in 2007, as the last expansion was about to end.

But that good cheer hasn’t translated to stronger spending. As has been the case throughout most of ...


August 28, 2014, 5:03 pm, 1326157

Diversity is turning out to be a key ingredient of a healthy and durable regional economy.

Unemployment has fallen sharply across the U.S. over the past year, sitting at 6.5% in ...


August 28, 2014, 5:03 pm, 1326155
Toyota Motor Corp. vehicles. Bloomberg News

If you are wondering why Japan’s exports are languishing despite the yen’s weakness, take a quick look at monthly production data ...


August 28, 2014, 5:03 pm, 1326153

The Federal Reserve Bank of Kansas City launched Thursday a new gauge to track labor market conditions, which signaled in its first outing a hopeful outlook for hiring in the U.S. economy.

The bank said that its Kansas City Fed Labor Market Conditions Indicators activity measure moved to -0.6 in July, ...


August 28, 2014, 5:03 pm, 1326151
Protestors and police officers are seen in smoke during a demonstration outside the Russian Consulate in the southeastern Ukrainian city of Kharkiv on August 28, 2014.


August 28, 2014, 5:03 pm, 1326152

Former Secretary of State Hillary Clinton, or any other potential Democratic candidate in the next presidential race, may need to have a plan to close the revolving door of Democratic economic advisers if she hopes to gain stronger support from America’s labor movement.


August 28, 2014, 5:03 pm, 1326154

August 28, 2014, 5:03 pm, 1326150

From NYT:

NATO released photographs on Thursday that it said shows Russian artillery units operating in Ukraine, and asserted that more than 1,000 Russian soldiers had now joined the separatists fighting there against the Ukrainian armed forces.

Source: NYT.

The MICEX ...


August 28, 2014, 4:44 pm, 1326149

Thoughts on cramdown and "make whole" call provisions, over at Dealb%k.


August 28, 2014, 4:35 pm, 1326148

Without changes in the law, health care, Social Security, and interest on the debt will eat up 85 percent of all new federal government spending over the next 10 years, according to the latest estimates by the Congressional Budget Office. By contrast, CBO expects most of the rest of ...


August 28, 2014, 4:05 pm, 1326147

One major advance in knowledge over the last twenty-five years of research in industrial organization is just how important — and how possible — market segmentation agreements and institutions may be.  Is this another example?:

…this summer the service provider T-Mobile began offering its customers an alternative. Under a free ...


August 28, 2014, 4:04 pm, 1326146
(August 28, 2014 04:45 PM, by David Henderson) I wrote an article to that effect in 2011, noting that airline seats are an excellent case study for the Coase Theorem. This is an economic theory holding that it doesn't matter very much who is initially given a property... (6 COMMENTS)


August 28, 2014, 4:04 pm, 1326145

In a new radio interview, [Massachusetts senator-cum-New Hampshire senate candidate Scott] Brown professes support for protecting people with preexisting conditions and other general goals of the law. But he reiterates his support for repealing Obamacare, claiming its goals should only be accomplished by states:

“I believe states can do it better. ...


August 28, 2014, 3:33 pm, 1326139
Re: the big balance sheet and how it improves financial stability.

Rodney Garratt, Antoine Martin, and James McAndrews at the New York Fed have a very nice post, Turnover in Fedwire Funds Has Dropped Considerably since the Crisis, but It’s Okay.

Before the crisis, ...


August 28, 2014, 3:33 pm, 1326138
Please consider the "official" exchange rate of the Bolivar to the USD.

Bolivar vs. US Dollar



From 2005 to 2009 the official exchange rate was 2 bolivars to one US dollar.In 2009 the official exchange rate soared to 4.3 to ...


August 28, 2014, 3:33 pm, 1326137

Check out the top pieces we’re reading today on the economy, technology, family, and more.

1.) Should the SAT be optional? Jonathan Wai weighs in at Quartz.

2.) Carson Bruno looks at the economic impact of the Napa earthquake in this Real Clear Markets piece.

3.) Here are the ...


August 28, 2014, 3:23 pm, 1326136

Dimitri Papadimitriou, after noting the ongoing failure of austerity policies in Greece, shares the results of a recent study led by Rania Antonopoulos on the effects of implementing direct job creation programs of various sizes in the beleaguered country. In one scenario, a 300,000-job program (in the low-to-medium-sized range of ...


August 28, 2014, 3:03 pm, 1326073

Matt Yglesias at Vox today argues that migration out of “blue states” is caused by high housing prices, not taxes, and high housing prices are essentially a function of bad zoning laws in “blue” cities. Yglesias literally wrote the book on this topic, ...


August 28, 2014, 3:03 pm, 1326072

Former Secretary of State Hillary Clinton, or any other potential Democratic candidate in the next presidential race, may need to have a plan to close the revolving door of Democratic economic advisers if she hopes to gain stronger support from America’s labor movement.


August 28, 2014, 3:03 pm, 1326071
From the Kansas City Fed: Growth in Tenth District Manufacturing Activity Slowed Slightly

The Federal Reserve Bank of Kansas City released the August Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, the survey revealed that growth in ...


August 28, 2014, 2:44 pm, 1326070
Should Hillary Clinton run for president, she may need to close the revolving door of Democratic economic advisers if she hopes to gain stronger support from America's labor movement.


August 28, 2014, 2:34 pm, 1326069

Get full access to all of these courses, including hours of lectures in both video and audio, linked syllabi of online readings, and more.


August 28, 2014, 2:05 pm, 1326067

August 28, 2014, 2:05 pm, 1326066

Exports are 16 per cent below the peak reached in 2008 in real terms, according to data from CLSA.

From Hennry Sender at The FT, there is more here.


August 28, 2014, 2:04 pm, 1326065
(Don Boudreaux)

San Jose, CA, recently raised a tax that it imposes on the use of low-skilled workers its minimum wage.  One result is that an employer reduced the size of the annual bonuses that she pays to her employees.  (NPR has the story; this particular part starts at ...


August 28, 2014, 1:33 pm, 1326062
While Eric Snowden and friends worry about the costs of spying, new monitoring technologies also offer benefits. This piecediscusses how drones are being introduced to patrol over nature parks to see if poachers are actively invading parts of a park. Such information should help environmentalists to focus ...


August 28, 2014, 1:33 pm, 1326061

A new IGM Forum poll of economists finds large, confident majorities who think US states are (a) understating pension liabilities and (b) at risk — at least some of them — of eventually needing a combo of austerity budgets, a federal bailout, and/or default unless they soon increase ...


August 28, 2014, 1:03 pm, 1326000

The Federal Reserve Bank of Kansas City launched Thursday a new gauge to track labor market conditions, which signaled in its first outing a hopeful outlook for hiring in the U.S. economy.

The bank said that its Kansas City Fed Labor Market Conditions Indicators activity measure moved to -0.6 in July, ...


August 28, 2014, 1:03 pm, 1325999


August 28, 2014, 1:03 pm, 1325998
The FDIC released the Quarterly Banking Profile for Q2 today.

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $40.2 billion in the second quarter of 2014, up $2.0 billion (5.3 percent) from earnings of $38.2 billion the ...


August 28, 2014, 12:44 pm, 1325997
David Wessel: A guide to understanding the federal deficit and the Congressional Budget Office's updated numbers.


August 28, 2014, 12:44 pm, 1325996

As prospects in key advanced economies improve, financial conditions will tighten. The effect of outward spillovers from source countries to emerging markets will depend on whether financial conditions are driven by stronger growth (real shocks) or unexpected tightening in financial conditions (money shocks) –  including those due to financial stability ...


August 28, 2014, 12:44 pm, 1325995
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August 28, 2014, 12:36 pm, 1325991
The long Labor Day weekend in the US is fast approaching and that means one thing at the world headquarters of The Capital Spectator: a 120-hour coffee break has commenced for all employees. The usual schedule resumes next week, on … Continue reading →


August 28, 2014, 12:35 pm, 1325990

Having spent a number of years living in Alabama, I’m well acquainted with the phrase, “Thank God for Mississippi.” While we had a lot of problems, we could always point to our western border for a state that was ...


August 28, 2014, 12:34 pm, 1325989
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August 28, 2014, 12:05 pm, 1325984

 The August Issue of The Free Market Is Now Online!

Hans-Hermann Hoppe is back with a new lecture on the social virtues of the entrepreneur this month:

What can be unambiguously stated about a capitalist’s profit or loss is this: his profit or loss ...


August 28, 2014, 12:04 pm, 1325983
(Don Boudreaux)

Here’s a letter to the New York Times:

While Jared Bernstein is correct that the dollar’s role as the international reserve currency increases the U.S trade deficit, his analysis of the consequences of a high global demand for U.S. dollars is a jumble of confusions (“Dethrone ‘King Dollar,’“ Aug. 28).

Most notably, ...


August 28, 2014, 11:33 am, 1325982

August 28, 2014, 11:03 am, 1325920

Brad DeLong:

When Do We Start Calling This “The Greater Depression”?: We started by calling it the financial crisis of 2007. Then it became the financial crisis of 2008. Next it was the downturn of 2009-2009. By the middle of 2009 it was clearly the biggest thing since the ...


August 28, 2014, 11:03 am, 1325919
From the NAR: Pending Home Sales Pick Up in July

The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 3.3 percent to 105.9 in July from 102.5 in June, but is still 2.1 percent below July 2013 (108.2). The index is at its highest level ...


August 28, 2014, 10:44 am, 1325918
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August 28, 2014, 10:05 am, 1325913

Eric Phillips’s Mises Daily article  on military spending from 2012 is as timely as ever: 

Military Spending and Bastiat’s “Unseen”

by Eric Phillips

[An army of] a hundred thousand men, costing the taxpayers a hundred million of money, live and bring to the purveyors ...


August 28, 2014, 10:05 am, 1325915

Mises Daily Thursday by David D’amato:

If, for good reason, we generally distrust the concentrated power wielded by coercive monopolies, we ought to avoid at all costs placing more power in the state, the ultimate embodiment of monopoly.


August 28, 2014, 10:05 am, 1325914

Mises Daily Thursday by Karen De Coster:

The nonprofit form of enterprise is indispensable to both recipient individuals and the benefactors who fund them.


August 28, 2014, 9:03 am, 1325851

August 28, 2014, 9:03 am, 1325850
The DOL reports:

In the week ending August 23, the advance figure for seasonally adjusted initial claims was 298,000, a decrease of 1,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 298,000 to 299,000. The 4-week moving average was 299,750, a ...


August 28, 2014, 8:44 am, 1325848
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August 28, 2014, 8:36 am, 1325843
Tomorrow’s update on US personal consumption spending for July is expected to show a rise of 0.3% vs. the previous month, based on The Capital Spectator’s median econometric point forecast. That’s a slight deceleration in growth vs. June’s 0.4% increase. … Continue reading →


August 28, 2014, 8:04 am, 1325839
(Don Boudreaux)

is from Roger Meiners’s October 2012 review of Pierre Desrochers and Hiroko Shimizu’s 2012 book, The Locovore’s Dilemma:

Locavore restaurants are sprinkled around the country.  Adherents worry about how far it is to go to get acceptable food; is 100 miles fair?  This hobby may voluntarily generate a bit of ...


August 28, 2014, 7:33 am, 1325834

The answer sounds right, if a bit . . . icky.


August 28, 2014, 7:33 am, 1325835

Interesting, but the article doesn't consider my preferred hypothesis: the kids are just too darned demoralized to fornicate.


August 28, 2014, 7:33 am, 1325833

The California DMV pays three--three, mind you--employees to keep HAMRJMR, PSTLCHK, RDSN57, and DOOTERS off the road.


August 28, 2014, 6:44 am, 1325780
Glen Bolger: Voters place a much higher priority on ideas for economic growth than ideas for economic justice.


August 28, 2014, 6:44 am, 1325778

The Crisis affected public spending. Research and innovation is one area often highlighted as needing protection. This column does not find strong evidence that European countries sacrificed research and innovation more than other government expenditure. However, there is strong heterogeneity across countries. Innovation lagging and fiscally weak countries cut R&I ...


August 28, 2014, 6:44 am, 1325779

It is well-known that World War I was expensive for Britain.  The indirect economic costs were also huge.  This column argues that the adverse implications of the Great War for post-war unemployment and trade – together with the legacy of a greatly increased national debt – significantly reduced the level ...


August 28, 2014, 6:44 am, 1325776
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August 28, 2014, 6:05 am, 1325771

An amazing 75% of the images in an Ikea catalog are not photographs but CGI.

…the real turning point for us was when, in 2009, they called us and said, “You have to stop using CG. I’ve got 200 product images and they’re just terrible. You guys need to practise ...


August 28, 2014, 5:33 am, 1325766

I'd be surprised, but pleased, if the "science" has improved since I attended. My college's crack housing folks put me--quiet, nerdy--with a hugely unhappy liar and a borderline alcoholic.

It wasn't fun.


August 28, 2014, 5:33 am, 1325765



(p. 836) Moretti's writing on the "creative class" takes issue with policies associated with Richard Florida, who has exerted a considerable influence on local policymakers worldwide. Moretti uses the example of Berlin, which is a cool place full of creative types but still isn't much of ...


August 28, 2014, 5:03 am, 1325740

Now that we've established what the relative purchasing power of a dollar is in each of the United States, we're going to apply that ...


August 28, 2014, 5:03 am, 1325739

August 28, 2014, 4:05 am, 1325738

I find this paper (pdf), by Anna Cieslak, Adair Morse, and Annette Gissing-Jorgensen, quite scary.  Do you?:

We document that since 1994 the US equity premium follows an alternating weekly pattern measured in FOMC cycle time, i.e. in time since the last Federal Open Market Committee meeting. The equity ...


August 28, 2014, 3:33 am, 1325736
Jane's Defense vs. Colonel Cassad Take II

In response to Jane's Defense vs. Colonel Cassad: Someone Seriously Wrong, a close friend wrote ...

Jane’s has been in business giving good advice for a century and could only do so by giving good advice. Everything I have ...


August 28, 2014, 3:23 am, 1325735
Sir James Mirrlees is one of the mere handful of British recipients of the Nobel Prize in economics. As his fine old Scottish surname might suggest, he has been active in the debate on independence. His latest intervention, which has attracted considerable publicity, is to pronounce that an ...


August 28, 2014, 3:23 am, 1325734
I really enjoyed reading this blog from Simon Tayloron the diminishing role of cash in contemporary economic life. Increasingly most cash is held in high denomination notes, even small scale transactions such as buying a coffee at the railway station or a book at the airport bookstore are paid using ...


August 28, 2014, 3:03 am, 1325689
Toyota Motor Corp. vehicles. Bloomberg News

If you are wondering why Japan’s exports are languishing despite the yen’s weakness, take a quick look at monthly production data ...


August 28, 2014, 2:44 am, 1325688
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August 28, 2014, 1:33 am, 1325687
Every day, the cost of a plane ticket out of Venezuela goes up. That assumes you can get a plane ticket, and you probably cannot, even if you booked three months ago. Delta Air Lines, American Airlines, and Lufthansa cut the number of flights. Air Canada stopped all service.


August 28, 2014, 1:23 am, 1325686

Photo Credit: dolphinsdock

The dirty truth is that some investments in this life are sold, and not bought.  The prime reason for this is that many people are not willing to learn enough to save and invest on ...


August 28, 2014, 1:03 am, 1325664

Today we are fortunate to have a guest contribution written by Doug Campbell, assistant professor at the New Economic School (Moscow).

The 2000s began with the Federal Reserve narrowly missing the zero lower bound on short-term interest rates. Then the US needed a housing bubble to attain ...


August 28, 2014, 12:34 am, 1325663

The nonprofit form of enterprise is indispensable to both recipient individuals and the benefactors who fund them.


August 28, 2014, 12:34 am, 1325662

If, for good reason, we generally distrust the concentrated power wielded by coercive monopolies, we ought to avoid at all costs placing more power in the state, the ultimate embodiment of monopoly.


August 28, 2014, 12:34 am, 1325661
Teaser:

Can ...


August 28, 2014, 12:04 am, 1325659
(August 28, 2014 12:14 AM, by Bryan Caplan) Read this neat NYT write-up of new research by Nancy Segal and co-authors. Segal, famous for her work on twins, got an idea when she encountered the oeuvre of Francois Brunelle, "a photographer in Montreal who takes pictures of pairs... (0 COMMENTS)


August 28, 2014, 12:04 am, 1325658

In 2015, I predict that Obamacare enrollment will soar, matching 2014’s success.

This may seem counter-intuitive. After all, in recent months, the public’s perception of Obamacare seems to have soured. The Henry J. Kaiser Foundation’s health care tracking poll for July reveals ...