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Modi, Sisi & Jokowi: Three New Leaders Face the Challenge of Food & Fuel Subsidies
Jeff Frankel
In few policy areas does good economics seem to conflict so dramatically with good politics as in the practice of subsidies to food and energy. Economics textbooks explain that these subsidies are lose-lose policies. In the political world that can sound like an ivory tower abstraction. But the issue of ...
 
Special Edition Grand Central: Live from Jackson Hole!
WSJ Economics
Central bankers from around the world gathered in Jackson Hole, Wyoming this weekend to discuss employment and monetary policy. Here's what they said.
Related: Activists at Jackson Hole See Recovery on Wall Street, 'Not My Street'
Pedro Nicolaci da Costa / WSJ Economics
A group of activists has descended on the Kansas City Federal Reserve Bank's annual conference in Jackson Hole, Wyo., to tell central bank officials that any move to raise interest rates soon could wreak havoc on the lives of Americans still struggling with a weak economic recovery.
Related: Yellen Sets Jackson Hole Agenda
Mohamed A. El-Erian / Bloomberg Views
Federal Reserve Chair Janet Yellen set the agenda at the annual Jackson Hole, Wyoming, economics conference by describing the challenges in determining the state of the labor market.
 
Draghi at Jackson Hole
Mainly Macro
To understand the significance of yesterday's speech (useful extract from FT Alphaville here), it is crucial to know the background. The ECB has appeared to be in the past a centre of what Paul De Grauwe calls balanced-budget fundamentalism. I defined this as a belief that we needed fiscal consolidation ...
Related: Draghi at Deflation Gulch
Paul Krugman / Paul Krugman - Blog
But what can he do?
Related: Draghi Calls for Less Austerity and More Stimulus in Europe
Binyamin Appelbaum / NY Times
In a change in tone, Mario Draghi, president of the European Central Bank, said Europe needed long-term action to shore up its economy.
Related: ECB's Draghi open to easing of austerity in eurozone
Andrew Critchlow / Telegraph
Mario Draghi suggested that countries in Europe should be encouraged to increase spending within the existing rules
Related: ECB's Draghi: Unemployment in the euro area
Bill McBride / Calculated Risk
From ECB President Mario Draghi at Jackson Hole: Unemployment in the euro areaNo one in society remains untouched by a situation of high unemployment. For the unemployed themselves, it is often a tragedy which has lasting effects on their lifetime income. For those in work, it raises job insecurity and ...
 
A less dovish Yellen, a more dovish Draghi
G.I. | JACKSON HOLE, WY. / Free Exchange
The contradictory signals generated by American labour market data in the last year have provided grist for both hawks and doves at the Federal Reserve. For hawks, the rapid decline in the unemployment rate shows slack in the economy is disappearing so the Fed should tighten soon. For doves, the ...
Related: The Fed and Money Markets
Arnold Kling / askblog
Jon Hilsenrath writes, Because banks have so much cash, the fed-funds market where they tap reserves experiences very little day-to-day trading. One New York Fed study shows daily trading volume in the market has contracted from an already-thin $200 billion ... Continue reading →
Related: The Fed can fix high unemployment, it can't fix low employment
Scott Sumner / Money Illusion
Tyler Cowen links to Binyamin Appelbaum: These results," wrote the economists Stephen J. Davis, of the University of Chicago, and John Haltiwanger, of the University of Maryland, "suggest the U.S. economy faced serious impediments to high employment rates well before the Great Recession, and that sustained high employment is unlikely ...
Related: Fed's Lockhart: Unemployment Rate Overstates Degree of Job Market Progress
Pedro Nicolaci da Costa / WSJ Economics
The Federal Reserve can likely wait until the middle of 2015 to begin raising interest rates from rock-bottom lows, given a job market that still shows signs of weakness and inflation that remains below central bank's 2% target, Atlanta Fed President Dennis Lockhart said.
Related: 3 Potentially Ominous ideas from Yellen's Speech
Angry Bear
Janet Yellen gave a speech today at the Jackson Hole conference. Here are 3 parts from her speech that are noteworthy and somewhat ominous... 1. "For example, as I discussed earlier, if downward nominal wage rigidities created a stock of pent-up wage deflation during the economic downturn, observed wage and ...
 
Learn, and be less unequal
C.W. | LINDAU, GERMANY / Free Exchange
IN THIS week's Free exchange column , we look at why globalisation may not reduce inequality in developing countries. Lots of theories have been proposed. We discuss one, outlined by Eric Maskin of Harvard University. Mr Maskin has been working for over a decade on this theory, which he is ...
Related: Robots won't destroy jobs, but they may destroy the middle class
Matthew Yglesias / Vox
Will automation take your job away? No, argues economist David Autor in a new paper presented at the Federal Reserve conference in Jackson Hole, Wyoming on Friday. Instead, it'll just push you into a menial low-wage job. That, at least, has been the recent past of technology's impact on the ...
 
BOJ's Kuroda Sees Pickup in Global Growth, Japanese Exports
Jon Hilsenrath / WSJ Economics
The Bank of Japan is sticking to its expectation of an improving domestic economy and gradually rising inflation, even though exports have slowed of late and the economy stumbled in the second quarter after the introduction of consumption taxes.
 
This Week on TRB
Joshua M Brown / Reformed Broker
Federal Reserve Chair Janet Yellen, right, arrives for a dinner during the Jackson Hole Economic Policy Symposium at the Jackson Lake Lodge in Grand Teton [...]
Related: Succinct Summation of Week's Events 8.22.14
Barry Ritholtz / The Big Picture
Succinct Summations week ending August 22nd Positives: 1. S&P 500 made a new all-time high. 2. Existing homes sales increased to 2.4%, the biggest increase in almost a year. 3. Housing starts exploded 15.7% m/o/m, the fastest pace in 8 months. 4. Jobless claims fell to 298k vs the 303k ...
 
A slight clarification about the "end of labor"
Noah Smith / Not Quite Noahpinion
Economic policy advisor David Autor has written an excellent new paper about labor market polarization, which you should read. In that paper, he cites an article I wrote for The Atlantic last year, discussing the possibility of "the end of labor." Mr. Autor makes it sound as if I believe ...
 
The Trouble with IS-LM (and its Successors)
David Glasner / Uneasy Money
Lately, I have been reading a paper by Roger Backhouse and David Laidler, "What Was Lost with IS-LM" (an earlier version is available here) which was part of a very interesting symposium of 11 papers on the IS-LM model published as a supplement to the 2004 volume of History of ...
 
Merkel Takes Charge of Pacifying Ukraine
Leonid Bershidsky / Bloomberg Views
German Chancellor Angela Merkel appears to have landed the role of chief negotiator in the Ukraine conflict. Expect an uneasy compromise.
Related: Ukraine: A Perspective From Europe
Tyler Durden / Zero Hedge
Submitted by Alasdair Macleod via Peak Prosperity, The eminent historian Niall Ferguson in an op-ed for the Financial Times (Friday August 1st) made a comparison between the events leading up to the start of WW1 and the Ukraine situation today. While the comparison is apposite given the 100-year anniversary of ...
Related: With Russia Convoy in Ukraine, Defiant Putin Stays One Step Ahead
David Francis / Foreign Policy
 
New-breed global investors and financial stability
VoxEU
Gaston Gelos , Hiroko Oura , 23 August 2014 The landscape of portfolio investment in emerging markets has evolved considerably over the past 15 years. Financial markets have deepened and become more internationally integrated. The mix of global investors has also changed, with more money intermediated by mutual funds. This ...
 
Firm growth and large jumps
VoxEU
Yoshiyuki Arata , 23 August 2014 One of the main models in industrial organisation assumes that firms grow in a response to many small shocks that satisfy the central limit theorem. This column shows that if the shocks do not follow the central limit theorem, then the firm growth follows ...
 
Argentina Lets Default Clock Run Out
Jamila Trindle / Foreign Policy
But even a default won't stop this soap opera.
Related: Argentine peso hits record lows on increased uncertainty
Sober Look
Argentina is showing signs of stress, as the official exchange rate has the US dollar now quoted 8.4 pesos - a new record.Chart shows USD appreciating against ARS (source: Investing.com)The exchange rate also hit a record, with the dollar quoted at 14 pesos - a 67% premium to the official ...
Related: Argentina's Exchange Offer May Not Be Clever Enough Yet
Matt Levine / Bloomberg Views
It's fun to think up schemes to help Argentina to complete its bond exchange, though you have to worry a little bit that it's forbidden by a court order.
 
Seizing China's new digital opportunity
McKinsey Insights
The rise of digital technology has become a global business issue. The global managing director of McKinsey & Company discusses some of the big and potentially bright implications for Chinese enterprises.
Related: China's Vast Corruption
Abheek Bhattacharya / MoneyBeat
China's anticorruption drive is creating some truth in advertising.
 
Crystal Ball: Send Us Your Prediction for Bank of America's Share Price
Karen Damato / Jason Zweig
Each week, The Wall Street Journal's Crystal Ball feature invites readers to test their prediction skills. Send your answer to the latest question to crystalball@wsj.com by midnight EDT Sunday, with your full name, city, state and phone number. The first reader who gets it right is named the following week. ...
 
Bank of England Deputy Sees Likely Rise in U.K. Wages
WSJ
Wages in the U.K. may soon start to pick up, but any quickening in pay growth could be held back by weak productivity growth and an expanding workforce, according to one of the Bank of England's top officials.
 
Is labor market regulations a binding constraint on Indian economy?
Gulzar Natarajan / Urbanomics
Even as the interest on reforming India's undoubtedly restrictive labor regulations mount, Pranab Bardhan has an excellent op-ed where he questions whether it is the "only or one of the main constraints" on the revival of India's manufacturing sector. All his arguments are compelling and I am inclined to agree ...
 
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Learn, and be less unequal
Free Exchange
Modi, Sisi & Jokowi: Three New Leaders Face the Challenge of Food & Fuel Subsidies
Jeff Frankel
Robots won't destroy jobs, but they may destroy the middle class
Vox
Is labor market regulations a binding constraint on Indian economy?
Urbanomics
Bank of England Deputy Sees Likely Rise in U.K. Wages
WSJ
Draghi at Jackson Hole
Mainly Macro
A less dovish Yellen, a more dovish Draghi
Free Exchange
Special Edition Grand Central: Live from Jackson Hole!
WSJ Economics
This Week on TRB
Reformed Broker
Draghi at Deflation Gulch
Paul Krugman - Blog
What's this?
Link: Centre for Macroeconomics
Link: Economic and Social Research Council
 
Last Updated: 05:33 GMT     Saturday, 23 Aug. 2014 Archive About FAQ Home