On Wealth Inequality

Joseph Stiglitz:

Inequality is bad for growth, stability and efficiency. … Inequality peaked both before the Great Depression and before the Great Recession, and it’s not an accident. So basically, when we have a lot of inequality, demand goes down. … All this inequality was offset by creating a bubble. The bubble allowed people . . . → Read More: On Wealth Inequality

Forbes: Tax Shelter from Hell - U.S. Steel Tower in Pittsburgh

I was going to label this ‘Beyond grad school public finance’, but I thought that would make folks’ eyes glaze over.  So this is one of those convoluted policy things in Pennsylvania that make it too hard to figure out what side you are even on.  The angles and implications of this are . . . → Read More: Forbes: Tax Shelter from Hell – U.S. Steel Tower in Pittsburgh

Nothing new in macroeconomic methodology? (wonkish)

Simon Wren Lewis who is a professor of economics at Oxford University has an interesting piece (hat tip: Mark Thoma) on the distinction and choice between micro founded macroeconomic models and top-down models such as the IS/LM (Keynesian) or other variants such as Modern Monetary Theory (MMT).

I think this is an interesting discussion . . . → Read More: Nothing new in macroeconomic methodology? (wonkish)

Economic Events on March 5, 2012

At 10:00 AM Eastern time, the Factory Orders report for January will be released.  The consensus is that there was a decrease of 1.6% in orders from the previous month.

Also at 10:00 AM Eastern time, the ISM non-manufacturing index for February will be released.  The consensus estimate is that it decreased by 0.8 . . . → Read More: Economic Events on March 5, 2012