I was saddened to hear of the passing of William Nordhaus last Friday. Nordhaus won the Nobel Prize in 2018 “for integrating climate change into long-run macroeconomic analysis”, and it is his work on climate change and economics that he might be best known for. However, that was far from his only contribution to economics.…
William Nordhaus, 1941-2026
William Nordhaus, 1941-2026
02 Nov 2026 Leave a comment
in applied price theory, applied welfare economics, development economics, econometerics, economic growth, economic history, environmental economics, history of economic thought, macroeconomics
Brazil’s economic problems, in a nutshell
26 Oct 2026 Leave a comment
in budget deficits, development economics, economic growth, economic history, fiscal policy, growth disasters, labour economics, macroeconomics, welfare reform Tags: Brazil
It would take true Milei-like ardour to slice through Brazil’s economic troubles. These are caused by a gnarly mix of high public spending, stubborn inflation and low saving. The result is a crippling cost of capital. Some analysts put Brazil’s real interest rate, the BCB’s policy rate adjusted for next year’s expected inflation, at 9% or…
Brazil’s economic problems, in a nutshell
Will bystander economies be able to finance their governments?
24 Oct 2026 1 Comment
in Public Choice, entrepreneurship, macroeconomics, public economics, economic growth, applied price theory, fiscal policy, budget deficits Tags: creative destruction
From Jesús Fernández-Villaverde: Will AI poison the public finances of many modern states? There is a real risk that it will. Yesterday, I circulated a new paper, “Saving for the Machines,” which makes a simple point. Building the AI transformation will require enormous investment. The only way to induce agents to save for that investment…
Will bystander economies be able to finance their governments?
SIEPR Economic Summit 2026 | California Wealth Tax
22 Oct 2026 Leave a comment
in applied price theory, economic growth, economic history, entrepreneurship, fiscal policy, history of economic thought, human capital, income redistribution, labour economics, labour supply, macroeconomics, Public Choice, public economics Tags: California, taxation and entrepreneurship, taxation and investment
Robert E. Hall, Nobel Laureate
13 Oct 2026 1 Comment
in business cycles, economic growth, fiscal policy, history of economic thought, labour economics, macroeconomics, monetarism, monetary economics, unemployment
Alex has already covered this, I will add a few remarks. First, every Bob Hall paper is interesting! Only a handful of economists can say the same. Every paper has an idea, and some sort of novel contribution. His lesser-known papers can be as thought-provoking as the more famous ones. Here is Bob on scholar.google.com. …
Robert E. Hall, Nobel Laureate
The Great Enrichment
09 Oct 2026 Leave a comment
in economic growth, economic history, entrepreneurship, macroeconomics Tags: The Great Enrichment
America’s Affordability Problem Is Government
02 Oct 2026 Leave a comment
in economic growth, economic history, entrepreneurship, financial economics, history of economic thought, human capital, labour economics, labour supply, macroeconomics, poverty and inequality Tags: The Great Enrichment, top 1%
I have a series of columns (2021, 2024, 2025, and 2026). documenting that Americans are getting richer. And here’s a chart that adds additional evidence. More and more households over time are high income (over $100k) and fewer and fewer are low income (under $35k). And, yes, these numbers are adjusted for inflation. The chart was […]
America’s Affordability Problem Is Government
Friedman on fiscal policy
30 Sep 2026 Leave a comment
in budget deficits, business cycles, economic growth, fiscal policy, history of economic thought, macroeconomics, Milton Friedman, monetarism, monetary economics
Scott Freeman and the AI boom and possible initial slowdown
30 Sep 2026 Leave a comment
in applied price theory, business cycles, economic growth, economic history, entrepreneurship, history of economic thought, labour economics, labour supply, macroeconomics, monetary economics, unemployment Tags: real business cycle theory
The U.K. Version of the Laffer Curve Strikes Again
29 Sep 2026 Leave a comment
in applied price theory, economic growth, economic history, entrepreneurship, financial economics, fiscal policy, history of economic thought, labour economics, labour supply, macroeconomics Tags: British politics, taxation and investment, taxation and labour supply
There are two reasons why I periodically write about the Laffer Curve. I want my left-leaning friends to understand to understand that higher tax rates on productive behavior will lead to less taxable income and some foregone tax revenue. I want my right-leaning friends to understand that tax cuts are only self-financing in rare cases […]
The U.K. Version of the Laffer Curve Strikes Again
Real GDP Per Capita and the Standard of Living
28 Sep 2026 Leave a comment
in applied price theory, economic growth, macroeconomics
We are freshening up some of our videos with updated data so now is a good time to remind everyone that Modern Principles of Economics is best principles of economics textbook; great videos, clear writing and excellent applications and examples! The post Real GDP Per Capita and the Standard of Living appeared first on Marginal…
Real GDP Per Capita and the Standard of Living
UK productivity higher than we had thought
22 Sep 2026 Leave a comment
in economic growth, macroeconomics
UK productivity rose at almost twice the pace previously estimated in the decade after the 2008 global financial crisis, according to new official figures that make Britain look much less of an international outlier. Output per hour worked, the main measure of labour productivity, grew by an average of 1.3 per cent per year between…
UK productivity higher than we had thought
Canada Reduces the Tax Burden on New Investment
21 Sep 2026 Leave a comment
in economic growth, fiscal policy, macroeconomics, public economics Tags: Canada, taxation and investment
Until about 10 years ago, I often wrote positive columns about Canadian policy. I praised our northern neighbors for spending restraint, corporate tax reform, bank bailout policy, regulatory budgeting, the tax treatment of saving, and private air traffic control. Unfortunately, Canada then became more statist under Pierre Trudeau Justin Trudeau (understandable mistake on my part). And I […]
Canada Reduces the Tax Burden on New Investment
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