(March 25, 2016) Three things are striking about the rise in economic inequality since the 1970s in the United States. (1) It doesn’t really matter which measure of income distribution we choose; they all show a rise in inequality. (2) There are many different competing possible explanations and interpretations. (3) We do not need to agree on the explanation to agree on what are sensible policies to lessen inequality.
(8/10/2015) World oil prices have been highly volatile during the last decade. Over the past year they have fallen more than 50%.
Should we root for prices to go up, down, or stay the same?
The world is in the grip of a debate between fiscal austerity and fiscal stimulus. Opponents of austerity worry about contractionary effects on the economy. Opponents of stimulus worry about indebtedness and moral hazard.
Is austerity good or bad? It is as foolish to debate this proposition as it would be to debate whether it is better for a driver to turn left or right. It depends where the car is on the road. Sometimes left is appropriate, sometimes right. When an economy is in a boom, the government should run a surplus; other times, when in recession, it should run a deficit.