The Consequences Of Permanently Low Interest Rates
It is possible that, in the absence of rising inflation, interest rates remain extremely low for much longer. This has several important consequences for asset prices and the dollar, for […]
The Uber Economy
Here is one reason why wages are not rising – the uberfication of the economy, which has actually preceded Uber for decades; outsourcing is very similar in its effects. Structural […]
A Tax Cut For Shareholders
The proposed tax cuts aren’t likely to do much for the economy or the middle class. But they are an important factor in keeping the markets up and are likely […]
Why Business Investment Isn’t Booming
The best way to grow the economy, and thereby top line growth and increase competitiveness is to stimulate business investment. Business investment has been sub-par for a while, despite record […]
It’s The Economy, Stupid!
Globalization and other forces of structural change do not necessarily have to ravage economies. An interesting example is that of the German Mittelstand small and medium sized industrial companies which […]
Amazon Has Become A Macro Phenomenon
Has Amazon become so big that it is starting to affect how the US economy behaves? The evidence is somewhat mixed, Amazon probably exerts downward pressure on prices, but not […]
Some Weird Facts About The U.S. Labor Market
Whether the US labor market is tight or still has considerable slack is one of the most important economic puzzles right now. For instance, it determines whether the Fed should […]
The IMF Blasts The U.S.
The IMF has become pretty critical of the US economic model, arguing it isn’t addressing rising inequality, stagnant wages, declining participation and social mobility and high poverty levels. While this […]
What’s Behind Declining Economic Dynamism?
Several measures like new company formation show a worrying decline in US economic dynamism. Demographics and changes in retail and house ownership explain part of this. Regulation and increasing economic […]
The Wrong Kind of Entrepreneurs Flourish in America – Bloomberg
Because it’s just a transfer from one person to another, rent doesn’t necessarily make an economy less efficient — it’s just often unfair. But Robert Litan and Ian Hathaway, writing […]