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Economic Theory

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Insights From The Most Successful Investors In History. Is US economic growth over? Robert J.

Is US economic growth over?

Gordon, 11 September 2012 Global growth is slowing – especially in advanced-technology economies. This column argues that regardless of cyclical trends, long-term economic growth may grind to a halt. Noahpinion: R vs. g. In his new book, Thomas Piketty argues that R, the rate of return on capital (which is different than the safe interest rate "r") is greater than g, the rate of economic growth, and that this fact can be expected to continue into the indefinite future, resulting in an ever-rising capital share of income and an ever-falling labor share.

Noahpinion: R vs. g

The big question is whether R really will be greater than g into the foreseeable future. The "robots" argument basically says: "Labor" is just the flow income from renting out one specific type of capital, i.e. human capital. If technology continues to make more and more obsolete, then the value of human capital will fall as a percentage of total capital, and thus labor's share of income will continue to fall toward zero. Frohes 2014!

A region's gross domestic product, or GDP, is one of the ways of measuring the size of its economy.

The GDP of a country is defined as the total market value of all final goods and services produced within a country in a given period of time (usually a calendar year). It is also considered the sum of value added at every stage of production (the intermediate stages) of all final goods and services produced within a country in a given period of time. The most common approach to measuring and understanding GDP is the expenditure method: GDP = consumption + investment + (government spending) + (exports − imports), or, GDP = C + I + G + (X-M) "Gross" means depreciation of capital stock is not included.

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. . * Private consumption is a central concern of welfare economics. . * C is private consumption in the economy. . * Read national accounts. Scott Sumner Busts Krugman. 31 Jan 2015 Scott Sumner has been lighting it up at EconLog in his running commentary against Keynesians, notably Paul Krugman.

Scott Sumner Busts Krugman

(The two most recent examples are here and here, but it goes back further.) Scott’s running theme here is that guys like Krugman picked the U.S. austerity episode as the hill to die on, and then when they died, they not only didn’t see the problem, but instead ran around bragging about how awesome their model had performed! 01.pdf. Global Imbalances & Interest Rates. Great Leap Forward » BRAD DELONG: WE’RE ALL MINSKIANS NOW! Author: L.

Great Leap Forward » BRAD DELONG: WE’RE ALL MINSKIANS NOW!

Randall Wray · · Share This Print 20 22 Earlier this week I noted, tongue-firmly-in-cheek, that we’re all MMTers now, following Paul McCulley’s recommendation that we just declare victory. And be nice about it. Well here is a strange post from Brad DeLong: He proclaims that essentially anyone who is anyone is a Minskian. And apparently always was. Discussion Future Work. We are trapped in a cycle of credit booms - FT.com. Hayek, Keynes and How to Prevent Economic Crises: Sylvia Nasar.

Sept. 13 (Bloomberg) -- Unlike the movies, life rarely permits second takes.

Hayek, Keynes and How to Prevent Economic Crises: Sylvia Nasar

But the Second World War gave John Maynard Keynes, the patron saint of government activism, and Friedrich Hayek, the Cassandra who warned of the state’s destructive potential, just such opportunities.

Heterodox

The introduction of the euro was an important event for the world economy and the international political system.

For the first time in history, a substantial group of European countries-eleven of the fifteen members of the European Union including three members of the G-7-have voluntarily agreed to replace their national currencies with a single currency. The euro area has already become established as the second largest currency area in the world and will therefore become a major player in the international monetary system. Critics on Economists. Liberty Street Economics. The Marxist at UBS and His Confusion. George Magnus, Senior Economic Adviser at UBS is a Marxist.

The Marxist at UBS and His Confusion

FT has given him space to write an article which includes such gems as: Marx analysed and explained insightfully how and why capitalism would succumb to recurrent crises, and especially big ones after a credit bust. Let's be clear about a few things. The current financial crisis was caused by the on again, off again, money printing by central banks, such as the Federal Reserve.

Austrian business cycle theory fully explains the crises. Marx theories were a combination of bad economics, mixed with bad political theory, all wrapped with a Hollywood happy ending: Most European countries are rather small, yet we know little about their monetary history.

This book analyses for the first time the experience of seven small states (Austria, Belgium, Denmark, The Netherlands, Norway, Sweden, and Switzerland) during the last hundred years, starting with the restoration of the gold standard after World War I and ending with Sweden's rejection of the Euro in 2003. The comparative analysis shows that for the most part of the twentieth century the options of policy makers were seriously constrained by a distinct fear of floating exchange rates. Only with the crisis of the European Monetary System (EMS) in 1992–3 did the idea that a flexible exchange rate regime was suited for a small open economy gain currency. The book also analyses the differences among small states and concludes that economic structures or foreign policy orientations were far more important for the timing of regime changes than domestic institutions and policies.

: FocusEconomics search results. India: Inflation hits over-one-year high; decline in wholesale prices softens in NovemberDecember 15, 2015Consumer prices in November increased 0.40% over the previous month, which was below October’s 0.56% rise.Read more Tags: East & South Asia, India, InflationPhilippines: Exports contract for seventh consecutive month in OctoberDecember 14, 2015Philippine exports have been falling since April and continued to contract in October, although at a softer pace than in the previous month.Read more Tags: ASEAN, Philippines, TradeIndia: Industrial production picks up steam, expands at multi-year highDecember 14, 2015In October, industrial production expanded a notable 9.8% compared to the same month last year.Read more Tags: East & South Asia, India, IndustrySouth Africa: South African rand hits new record-low level in early-DecemberDecember 14, 2015South Africa’s rand (ZAR) has lost ground against the U.S.

By Rajesh Kumar Singh and Manoj Kumar NEW DELHI Mon Feb 9, 2015 8:20pm IST NEW DELHI (Reuters) - Taken at face value, India on Monday became the fastest growing major economy in the world after its statisticians changed the way they measure Asia's third-largest economy and showed it clocked faster growth than China in the December quarter. It marks a dramatic turnaround for an economy that a fortnight ago was assumed to be struggling to gain momentum under Prime Minister Narendra Modi's reform-minded government. Prior to Modi's election last May, the economy had endured its weakest phase of growth since the 1980s.

The statistical recovery is in large measure due to changes both in the way authorities calculate gross domestic product (GDP) and the base year. Under the new method, the economy expanded 7.5 percent year-on-year during the last quarter, higher than 7.3 percent growth recorded by China in the latest quarter. Here's a graph I got from the data, comparing corporate profits of the finance industry vs the non-financial industries from 1964 to 2012. Report of the commission on the measurement of economic performance et soci.

Economic Leaders

Deutsche sparen viel, konsumieren weniger, ihre Exporte sind grösser als ihre Importe: BMWs warten in Bremerhaven darauf, verschifft zu werden. Economist's View: New Classical, New Keynesian, and Real Business Cycle Mod. [This is an edited version of something I've posted here in the past. I'm hoping others will be motivated to add to (or correct) this history.] How to Prevent a Depression. Economic Concepts. Phantom Crises (Wonkish) - NYTimes.com. Simon Wren-Lewis is puzzled by a Ken Rogoff column that sorta-kinda defends Cameron’s austerity policies. Global flows in a digital age. Principles of Macroeconomics: Section 13 Main. Economic Theory. What have Keynesians learnt since Keynes? EconomicPolicyJournal.com: Incredible: DeLong-Krugman Go Out of 2012 with a. Mainly macro: Do not underestimate the power of microfoundations. A tale of two systems.