Paul Krugman doesn’t like this Washington Post piece on how slow growth could be the new normal for the US. He’s right that it’s a pretty bad piece but there are strong arguments for a slow pace of growth over the next few years for the U.S. economy. Thoughts here.
Some thoughts on today’s FOMC announcement and the contrast it represents to the ECB’s approach to monetary policy.
The factors underlying economic growth is one of the topics that I have focused on in my own research. Preparing for teaching some classes on this topic next term, I did some work this week on the potential for long-term growth of the U.S. economy, prompting this blog post.
I think the “sectoral balances” viewpoint of the macroeconomy, which emphasises that income equals spending, is hugely important for understanding what is going on in today’s global economy. However, an article today by Joe Weisenthal that appeals to this framework to pin the blame for the global financial crisis on Bill Clinton, struck me as incorrect. My response here.