We did not experience a recession from 2011 to 2014. We did experience the normal movement along the demand curve. Please stop confusing basic microeconomics v, basic macroeconomics. “Secular stagnation” was the phrased used in the US, and Europe was in recession for most of this period. Th...
Mr. Riedl’s main point is: All government stimulus spending requires first borrowing dollars that would have otherwise been applied elsewhere in the economy. The only exception is money borrowed from “idle savings,” which for reasons described above likely constitute a minuscule portion of the $...
“For example, herd immunity against measles requires about 95 percent of a population to be vaccinated. The remaining five percent will be protected by the fact that measles will not spread among those who are vaccinated. For polio, the threshold is about 80 percent,” he said. “Herd immun...
As a Physicist that has taken an interest in macroeconomics since 2007, I am perplexed. Starting with only an assumption the macro economy is a natural system, cycles are a given as equilibrium is constantly sought. Consider this hypothetical and consequence: a FDIC that guarantees only 75% of...
programs probably represents a burden for wealthy individual retirees does not mean those programs are necessarily a burden to the economy. That’s an example of the fallacy of the whole. From the economy’s perspective what counts is how much each retiree consumes, not the source of retir...
Technorati Tags:macroeconomics, economics, fiscal stimulus, block grants lilnevFebruary 8, 2009 at 9:00 am “I am definitely of the view that it is within the current power of the Federal Reserve to stimulate demand, and have urged the Fed to try to aim for a 3% inflation rate over the...
How bad has US fiscal policy been? In general, the macroeconomics of sound fiscal policy calls for the pursuit of two principles. First, in the short run, it should be countercyclical: expanding spending (or cutting tax rates) to stimulate the economy in response to recession, and restricting...