Tag Archives: Macroeconomics

The Wonks Battle for the Fed

By Noah Smith – These days, essentially all of the pre-2008 models have fallen out of favor, replaced by models where finance is the key. Most people would agree that’s a good thing.

But those models are going to have just as hard a time getting conclusive support from the data, because there just isn’t much data.

So again, conclusions about whether the Fed should print money and buy bonds to fight recessions will come down to intuition. As Robert Waldmann says, “The models change but the policy proposals remain the same.” more> http://tinyurl.com/k2vkost


Prosperity At Risk

English: Harvard Business School Baker Library...

Image @Wikipedia

January 2012

Findings of Harvard Business School’s
Survey on
U.S. Competitiveness

By Michael E. Porter and Jan W. Rivkin – For the first time in decades, the business environment in the United States is in danger of falling behind the rest of the world. With this, pressures on jobs, wages, and living standards will only grow.

Today, public discourse about the problem and potential solutions often ignores the root causes. Many see jobs as the goal, when in fact it is only through restoring American competitiveness that good jobs can be created and sustained.

Respondents perceived the United States as already weak and in decline with respect to a range of important factors:

  • the complexity of its national tax code
  • the effectiveness of its political system
  • the K-12 education system
  • macroeconomic policies
  • the efficiency of the legal framework, and regulation

Some current American strengths were seen as declining

  • logistics infrastructure
  • workforce skills
  • communications infrastructure

America’s unique strengths were perceived as stable or increasing in

more> (pdf)