Simplified Mankiw‑Reis Shows Rate Hikes Cut Future Inflation
A slightly simplified version of Mankiw-Reis makes it trivial to compute analytic solutions, and solves one of the main problems of monetary economics, how higher interest rates lower inflation going forward https://t.co/SmAZBHBBhR
Too Many Funding Raths, Few Viable Projects
There are ratholes everywhere, and potential good projects. Lots of BS "research" is funded -- and some good. "infrastructure investment?" come look at CA high speed train to nowhere for a fantastic rathole.
Central Banks, Not Treasuries, Curb Debt Monetization
Indeed no Treasury has ever said "stop monetizing debt, that's inflationary." It is the independent central bank's job to push back on debt monetization.
Zoning Laws Stifle Development with Overbearing Restrictions
When zoning laws made it illegal to do so. (Mixed business/residential, height limits, setbacks, onsite parking, floor/land area ratios, "affordable" housing mandates, etc.)
Europe’s Energy Retreat Risks Carbon Leakage, New Nuclear Hope
Excellent analysis covering europe's energy suicide including nuclear retreat and fracking bans, exporting carbon intensive industries. It's hard to turn around once the expertise is gone, see France attempt to build a new nuclear plant.
ACA's Bans and Tax Rules Kill Portable Individual Plans
And, the ACA banned individual guaranteed renewable plans which existed, and protected against the emergence of preexisting conditions. The tax deduction for employer based group plans, but not for contributions to portable individual plans nails the coffin. Great essay.
FTPL Slope < 1 Reflects Expected Deficit‑repayment Dynamics
Excellent. In FTPL, one can interpret the slope as "what fraction of the deficits did people think would be repaid by later surpluses or lower interest costs?" and the error term as variation from a common value. A slope <...
Nellie Bowles: Mainstream Media Narrative Still Alive
Fantastic TGIF from Nellie Bowles. In case you thought the "mainstream media narrative" was a thing of the past. https://t.co/DhRozd7OVl
US/Israel Must Keep Strait Open to Block Iran's Trump Card
On the other hand, if US/Israel give up because unable to keep the straits open, we hand Iran a trump card almost as valuable as nuclear weapons. So, can the whole US + Israeli military not stop Iran from threatening...
Low Reserves Raise Borrowing Costs and Default Risk
Isn't it likely that countries in fiscal distress find it hard to borrow, have to pay high default premia, and run down their reserves like everything else?
Top Minds Discuss Economics on Larry Bernstein Podcast
Interview with Kevin Warsh, Myron Scholes and (separately) me, on the Larry Bernstein podcast. Excellent questions. https://t.co/LoFzv1bqmR
Asset Pricing's Biggest Unsolved Questions Still Challenge Economists
https://t.co/xnes97Kg4l A keynote speech on big questions in asset pricing -- still unresolved after decades, though much progress.