Category Archives: Teaching macroeconomics

Tariffs and trade wars, some comments

We are having an informal Civil Society Institute discussion on the tariffs and trade war issue this week, so I  thought I would do a little round-up. My friend Tom Prusa summarizes some of the basics for a New Jersey … Continue reading

Posted in Teaching international trade, Teaching macroeconomics

Why did the South support the Federal income tax and the 16th amendment? because they understood the Progressive movement all too well

Robin Einhorn on tax redistribution to the South in the United States, “Look Away Dixieland: The South And The Federal Income Tax” in Northwestern University Law Review, 2014. Some facts (and Einhorn has great maps in the paper): Armed with … Continue reading

Posted in Teaching macroeconomics, United States

University of Chicago event on macroeconomy and tax reforms… Roundtable Discussion with Austan Goolsbee and Edward Lazear

Notes on Goolsbee and Lazear Interviewer:  What problems need solving through tax reform Lazear growth rate is way too low growth rate out of recession is low (both recoveries, historical standards) growth related to productivity and related to wages so … Continue reading

Posted in Teaching macroeconomics

Summary of key changes in tax code

Preliminary Details and Analysis of the Tax Cuts and Jobs Act from The Tax Foundation Analysis of Final Tax Reform Legislation, Corporate Perspective Harvard Law School Forum on Corporate Governance Good summary of provisions from Cooley LLP

Posted in Teaching macroeconomics

Productivity growth during WWII in the United States, Alex Field version

My colleague Alex Field presented a working paper on productivity growth legacy of WWII.  Robert Gordon has argued that war production led to huge learning by doing that carried over into manufacturing.  Alex strongly disagrees, amassing lots of data suggesting … Continue reading

Posted in Development thinking, Teaching macroeconomics, United States

Puerto Rico Declares a Form of Bankruptcy

I am sure President Trump with his extensive experience with bankruptcy, and his many friends owning island property, will be deeply involved in the negotiations and eventual resolution.  From NYT. The governor of Puerto Rico, Ricardo Rosselló, said he would … Continue reading

Posted in Teaching international trade, Teaching macroeconomics, United States

Trump and Navarro want to make the U.S. more like China… Why do we want to be poorer?

“More manufacturing.” “Without manufacturing we cannot be a great nation.”  So think about it.  The more like China the United States becomes, the more our average per capita income will drop to $5,000 per person (China’s), instead of $45,000 (ours … Continue reading

Posted in Teaching international trade, Teaching macroeconomics, United States | 1 Comment

Thoughtful interview on Fed policy

Our whole conference has been about anomalies. Some of those anomalies are pretty fundamental. Why has G.D.P. growth been slow? Why has the labor force participation rate come down so much? Why haven’t we hit 2 percent inflation more quickly? … Continue reading

Posted in Teaching macroeconomics

John Cochrane thinks the administrative state silences speech… I think there is a bigger danger from Donald Trump

I was listening to John Cochrane, now at Hoover Institute, giving an EconTalk Podcast with Russ Roberts. One of the main problems with the over-regulatory administrative state that the United States is becoming, according to Cochrane, is that “the rules” … Continue reading

Posted in Teaching macroeconomics, United States

On Voix d’Amerique (VOA- Afrique) français today

Gaby Dorcil called, and who can resist his voice, to ask me to speak on the OPEC decision to limit production and effectuate an increase in oil prices.  Volontiers, of course, though I cringe when I hear my American-inflected French.  … Continue reading

Posted in Teaching macroeconomics

Jobs and wages in the United States: Finally some policy debate

A student shared a recent oped by Alan Blinder at the WSJ. Andrew, Thanks for sharing! Something like this should be on the final, right? 😉  Actually, this is more about micro-level policies and supply side policies that we have … Continue reading

Posted in Teaching macroeconomics

 IMF quota and governance reforms were finally approved by members earlier this year

The IMF’s 2010 quota and governance reforms have finally become effective and will give emerging markets like BRICS more power and greater say at the lender of last resort. “The conditions for implementing the International Monetary Fund’s 14th General Quota … Continue reading

Posted in Teaching macroeconomics

Why is higher inflation worse than lower inflation?

Fredrik Wulfsberg’s analysis of Norwegian data suggests it is because when inflation gets higher (i.e. 10-15% range) firms change prices much more frequently, and so presumably this is more confusing for consumers. The main result in this paper is that … Continue reading

Posted in Teaching macroeconomics

Total Factor Productivity growth accounts for all growth in U.S. agriculture according to USDA

The TFP indexes reveal the dramatic contraction of labor in the farm sector. Agricultural land, a component of capital, also fell steadily, except for a brief cessation in the 1970s, and by 2004 amounted to less than three-quarters of its … Continue reading

Posted in Teaching macroeconomics

Bad news on GDP growth (very slow) and business investment continues to drag

Based on more complete information about recent years, the government also revised last year’s growth rate up slightly to 2.6 percent — the best so far since the severe recession ended in 2009. But that’s still well below the gains … Continue reading

Posted in Teaching macroeconomics

Growth accounting West Africa

The results show that during the period 1980–2012, with the exception of Nigeria and Cote d’Ivoire productivity growth was not the hardcore of the growth observed in the ECOWAS countries but the growth was driven by factor accumulation. In addition, … Continue reading

Posted in Teaching macroeconomics

U.S. savings rate vary by age

Nice graphic from WSJ.  The source and article worth reading is here.

Posted in Teaching macroeconomics

Fixed exchange rate arrangements per IMF 2014

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Decline in the labor force participation rate

A short note from the St. Louis Fed suggests that much of the decline is anticipated demographic change and inevitably reversal of the extremely high participation rates in the early 2000s (A Closer Look at the Decline in the Labor … Continue reading

Posted in Teaching macroeconomics

Harassing the government of Puerto Rico: “I want my money.”

What the hedge funds can do that individual small investors cannot is constantly harass and nip the heels of Puerto Rico, thus possibly securing higher payment eventually.  Bloomberg summarizes the major suits against Puerto Rico that deal with debt repayment: … Continue reading

Posted in Teaching macroeconomics