Krugman

Tyler Durden's picture

Krugman And The Keynesian Chorus Are Lying: Japan's "Lost Decade" Is A Myth





One of the great economic myths of our time is Japan’s “lost decades.” As Japan doubles-down on inflationary stimulus, it’s worth reviewing the facts. The truth is that the Japanese and US economies have performed in lock-step since 2000, and their performances have matched each other going as far back as 1980. Either Japan’s not in crisis, or the US has been in crisis for a good thirty-five years. You can’t have it both ways... So, Who Benefits from the “Lost Decades” Myth?

 

 
Tyler Durden's picture

Employers Aren't Just Whining: The "Skills Gap" Is Real





What is hard to measure is often hard to manage. Employers using new technologies need to base hiring decisions not just on education, but also on the non-cognitive skills that allow some people to excel at learning on the job; they need to design pay structures to retain workers who do learn, yet not to encumber employee mobility and knowledge sharing, which are often key to informal learning; and they need to design business models that enable workers to learn effectively on the job (see this example). Policy makers also need to think differently about skills, encouraging, for example, industry certification programs for new skills and partnerships between community colleges and local employers. Although it is difficult for workers and employers to develop these new skills, this difficulty creates opportunity. Those workers who acquire the latest skills earn good pay; those employers who hire the right workers and train them well can realize the competitive advantages that come with new technologies.

 
Tyler Durden's picture

It Begins: "Central Banks Should Hand Consumers Cash Directly"





"Rather than trying to spur private-sector spending through asset purchases or interest-rate changes, central banks, such as the Fed, should hand consumers cash directly.... Central banks, including the U.S. Federal Reserve, have taken aggressive action, consistently lowering interest rates such that today they hover near zero. They have also pumped trillions of dollars’ worth of new money into the financial system. Yet such policies have only fed a damaging cycle of booms and busts, warping incentives and distorting asset prices, and now economic growth is stagnating while inequality gets worse. It’s well past time, then, for U.S. policymakers -- as well as their counterparts in other developed countries -- to consider a version of Friedman’s helicopter drops. In the short term, such cash transfers could jump-start the economy...  The transfers wouldn’t cause damaging inflation, and few doubt that they would work. The only real question is why no government has tried them"...

 
Tyler Durden's picture

Krugman's Keynesian Crackpottery: Wasteful Spending Is Better Than Nothing!





Janet Yellen has essentially confirmed QE’s demise; good riddance. Unfortunately, I don’t think that is the final end of QE in America, just as it hasn’t been the end time after time in Japan (and perhaps now Europe treading down the same ill-received road). The secular stagnation theory, that we think has been fully absorbed in certainly Yellen’s FOMC, sees little gain from it because, as they assume, the lackluster economy is due to this mysterious decline in the “natural rate of interest.” Therefore QE in the fourth iteration accomplishes far less toward that goal, especially with diminishing impacts on expectations in the real economy, other than create bubbles of activity (“reach for yield”) that always end badly. What Krugman and Summers call for is a massive bubble of biblical proportions that “shocks” the economy out of this mysterious rut, to “push inflation substantially higher, and keep it there.” In other words, Abenomics in America. Japanification is becoming universal, and the more these appeals to generic activity and waste continue, the tighter its “mysterious” grip.

 
Tyler Durden's picture

San Francisco Bay Area Hit By Strongest Earthquake In 25 Years; Wine Country Shakes - LIve Webcast





An earthquake of 6.0 magnitude, the largest in the region for 25 years, shook the San Francisco Bay Area early on Sunday, waking residents and causing some power outages and minor damage, according to initial reports.

 
Tyler Durden's picture

"The Financial System Is Vulnerable," NYFed Asks "Could The Dollar Lose Its Reserve Status?"





When a tin-foil-hat-wearing blog full of digital dickweeds suggest the dollar's reserve currency status is at best diminishing, it is fobbed off as yet another conspiracy theory (yet to be proved conspiracy fact) too horrible to imagine for the status quo huggers. But when the VP of Research at the New York Fed asks "Could the dollar lose its status as the key international currency for international trade and international financial transactions," and further is unable to say why not, it is perhaps worth considering the principal contributing factors she warns of.

 
George Washington's picture

Krugman: War Is BAD for the Economy





“War Necessarily Inflicts Severe Economic Harm Even On the Victor”

 
Cognitive Dissonance's picture

Control the Language and You Control the Mind





It is the effective manipulation of our belief systems that enslaves us to the present day insanity.

 
Tyler Durden's picture

The New York Times' Revenue Since Hiring Paul Krugman





Correlation or causation?

 
GoldCore's picture

‘Apocalypse’ Krugman Ignores History, Keynes And Lenin’s Warnings





When it comes to the apocalypse, Krugman likes to have his apocalyptic cake and eat it too. Krugman says that the recent concern about “debts and deficits” was a “false alarm.” He attempts to paint those who were concerned about the debt crisis as scare mongers. He sarcastically says that “the debt apocalypse has been called off.”

 
Tyler Durden's picture

Krugman’s Latest Debt Denial: Why His Two Magic Numbers Don’t Cut It





Professor Krugman is at it again - conjuring fairy tales about a benign long-term fiscal outlook. Notwithstanding that the public debt has surged from 40% to 75% of GDP during the six short years since 2008, he claims there is no reason to fret and that there is no debt spiral anywhere in the future. In part that’s because the Keynesian priesthood has declared that interest rates have down-shifted on a permanent basis. Under a regime of even modest monetary normalization over the next quarter century, current fiscal policy will lead to interest rates that are far higher, not lower, than the growth rate of nominal income. So its time to put Greece right back into the front and center of the US fiscal picture.

 
Tyler Durden's picture

Krugman: CBO Doesn't Know How To Read Its Own Report





Paul Krugman reads the latest long-term forecast from the US Congressional Budget Office (CBO) and he likes what he sees. Even though the chart below is the CBO’s projections for the growth of federal debt, described by CBO as "a path that would ultimately be unsustainable," Krugman nonetheless offers a rosy commentary...

 
Tyler Durden's picture

Never Mind Their Distrust Of Data And Forecasts; Austrians Can Help You Predict The Economy





"Of all the economic bubbles that have been pricked, few have burst more spectacularly than the reputation of economics itself." – From The Economist, July 16, 2009.

Mainstream economists continue to dominate their profession and wield huge influence on public policies. They merely needed to close ranks after the financial crisis and wait for people to forget that their key theories and models were wholly discredited. Meanwhile, heterodox economists who stress credit market risks and financial fragilities – the Austrians, the Minskyites – remain stuck on the fringes of the field. It doesn’t much matter that the crisis validated their thinking. Nonetheless, we’ll continue to explain why we think a shake-up is overdue...“Mythbusting” the theories of mainstream economists.

 
Tyler Durden's picture

Bubbles Everywhere: Krugman Wrong Again; Austrians And The BIS Are Correct





Paul Krugman is at it again – distorting or misinterpreting work by other economists to attack critics of today’s central bank driven low interest rate environment and to defend policy status quo or to push for even more stimulus.

 
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