The world is struggling to rebalance its great savings imbalances and is not advancing much. In Europe, and as I discussed in my very long May 21 blog entry, it seems that Germany is still unable to force though the adjustments needed in internal demand and is hoping to foist its imbalances onto the rest … Read more
U.S. consumer price inflation jumped to a seasonally adjusted annual rate of over 5.9 percent in June, according data released today by the Bureau of Labor Statistics. That was up from an inflation rate of just 1.8 percent in May. In March and April, the CPI actually decreased. How much do we need to worry … Read more
Over 600 business and political leaders gathered recently in Libreville, Gabon, to debate and help shape Africa’s road map. RGE Chairman Nouriel Roubini shared his perspective on what the future holds for this region and provided policy guidance. As attendees looked at whether the increasingly robust economic growth in Africa is sustainable, Roubini talked about … Read more
In the first two parts of this series, I discussed the reasons why both conservatives and progressives should love a carbon tax, and why many of each political persuasion do. In this third installment, I take up the more difficult case of libertarians. There is no way that a good libertarian could love a carbon … Read more
(This is a prequel, Part 1 on BIG; I already did Part 2. Sorry it is longish, but not technical.) Last week I criticized an article by Allan Sheahen who argued that “Jobs Are Not the Answer” to America’s unemployment problem. The thesis was based on two propositions. First, labor productivity has grown so we’d … Read more
Progressives should love a carbon tax. Most progressives love the environment and believe that carbon emissions cause environmental harm. Unlike conservatives, whose attitudes toward carbon taxes were the subject of my last post, progressives have no generalized aversion to taxes. Carbon taxes should be a natural for progressives, then, if they can accept the power … Read more
State GDP shows the following in 2012: durable goods manufacturing and finance and insurance are primary drivers of cross-sectional growth. This confirms the national story, according to the BEA. A state-level breakdown shows strong (a surge in) economic activity in North Dakota, Oregon, Texas, and Utah, as 2012 real GDP was the highest in these economies compared … Read more
The deterioration of the international scenario combined with larger fiscal deficits will probably jeopardize Brazilian economic policy until the 2014 elections. The international economic scenario has changed significantly. Last month, FED’s chairman, Ben Bernanke, has announced that QE3 will be gradually discontinued until 2015 (the famous, maybe now, infamous, “taper”), if the economy continues to … Read more
It is sunday evening and I’m sure that not many of you are reading blogs today, but I just saw a nice article that reports a new study that is probably worth a look. So next week when you’ve got time, read this and download the report that is mentioned: Can We Afford to Wait … Read more
Annie Lowrey’s lazy piece in the NYTimes riled Bill Black. You don’t want to mess with Bill. He takes a lawyer’s scalpel to thoroughly dissect facetious arguments. See his latest at New Economic Perspectives. It is a masterful takedown of Lowrey, Thoma, Krugman, and Cochrane—whose dismissive attitude toward MMT only reveals bias. I’m just going … Read more