Monthly Archives: November 2013
Two Amazing Charts
Research by Christopher Erceg and Andrew Levin is providing solid evidence that the decline in the labor force participation rate since 2007 has been due to cyclical factors–the recession and slow recovery–rather than to demographic factors. In other words, the … Continue reading
Posted in Slow Recovery
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Krugman’s Slack
In a piece yesterday, Paul Krugman disagrees with my assessment that there was more overheating than slack in the economy in the years leading up to the 2007-09 recession and financial crisis. That assessment was one part of a broader … Continue reading
Posted in Financial Crisis, Slow Recovery
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The Problem is Policy Not a Secular Decline in the Real Interest Rate
Larry Summers’ recent talk on what ails the US economy at the November 8 IMF conference is getting a lot of attention. I first heard Larry present his argument at the October 1 Brookings-Hoover conference organized by Martin Baily and me, and … Continue reading
Posted in Slow Recovery
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It’s Not Doves v Hawks, It’s Rules v Discretion
For years commentators have endeavored to classify monetary policy makers into doves and hawks. Doves are said to be more concerned with unemployment. Hawks are supposedly more concerned with inflation. And because many commentators associate easy money (however one defines … Continue reading
Posted in Monetary Policy
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Economics One 