The Ogre & the Cog: A Tale of Modern Misallocation
The tale of the ogre and the cog endeavors to explain why modern capitalist machinery isn’t working the way it is supposed to. The open question is whether this is inevitable.
Read more...Category Archives: Economic fundamentals
James Galbraith Describes Major Forecast Failure in Model Used by Romers to Attack Friedman on Sanders Plan
James Galbraith examines the used forecast by Christine Romer and David Romer to attack Gerald Friedman’s favorable review of Sanders’ plan. He’d already shellacked the methodology in a 2014 book.
Read more...Negative Rates, Negative Reactions
A new survey suggests that negative rates will be counterproductive. Consumers will not spend more, as central banks wish, but will hoard.
Read more...Wolf Richter: Is This the Beginning of the Next Recession?
A sustained contraction in manufacturing historically has been a harbinger of recession. Be warned.
Read more...Introducing Kuznets Waves: How Income Inequality Waxes and Wanes Over the Very Long Run
Why income inequality is likely to remain high.
Read more...Bill Black: Krugman Triples Down on His Smear of Friedman and Bernie
Krugman has really lost it.
Read more...Krugman and His Gang’s Libeling of Economist Gerald Friedman for Finding That Conventional Models Show That Sanders Plan Could Work
Krugman has made maliciously false statements about economics professor Gerald Friedman. Demand that the New York Times issue a correction and that Krugman apologize.
Read more...The ECB’s Original Sin and Franco Modigliani’s Long View
Franco Modigliani foresaw how the ECB and the Eurozone architecture had an anti-growth bias and proposed remedies that were ignored.
Read more...The China Delusion
Why the path forward for China is fraught from both an economic and political standpoint.
Read more...Michael Hudson Discusses the Federal Reserve and the Global Fracture
Explaining how the Federal Reserve and central bank policies like QE, saved the banks at the expense of wrecking the real economy.
Read more...Wolf Richter: Sudden Death? Junk-Rated Companies Headed for Biggest “Refinancing Cliff” Ever – Moody’s
A refinancing bulge is coming awfully soon.
Read more...Has the Crash of the Global Financial Markets Begun?
Is “crash” the right word to describe the Mr. Market’s rattled nerves?
Read more...Money and Banking – Treasury and Central Bank Interactions
The post studies how the Fed is involved in fiscal operations and how the U.S. Treasury is involved in monetary-policy operations. The extensive interaction between these two branches of the U.S. government is necessary for fiscal and monetary policies to work properly.
Read more...Satyajit Das: Age of Stagnation or Something Worse?
In The Age of Stagnation, author Satyajit Das has shifted from his usual wry detachment to a sense of foreboding.
Read more...Should Argentina Now Pay the Ransom to Its Hostage-Takers?
Argentina’s vultures keep pressing for higher and higher settlement terms, while giving the impression that at some point they would settle. What is the end game?
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