Source: Edward Prescott
The economic performance of the USA, Japan and the European Union prior to the global financial crisis
23 Feb 2015 Leave a comment
in business cycles, economic growth, Edward Prescott, Euro crisis, global financial crisis (GFC), great recession, macroeconomics, politics - USA Tags: Euroland, GFC, global financial crisis
Source: Edward Prescott
Everybody is seriously richer because of post-war capitalism
22 Feb 2015 Leave a comment
in economic growth, economic history, liberalism Tags: capitalism and freedom, The Great Enrichment, The Great Fact
Figure 1: Growth in real average income for the bottom 90%
Source: voxeu.org
By the way, in the countries where growth in real average incomes appears to have flattened out, is it seriously suggested that middle-class families cannot buy a basket of goods of superior quality and quantity than they could 30 or 40 years ago?
US post-war economic booms compared
22 Feb 2015 Leave a comment
in business cycles, economic growth, economic history, macroeconomics, politics - USA Tags: Edward Prescott
Source: Edward Prescott
Super-Economy: The Economic Performance of Europe and the United States
19 Feb 2015 Leave a comment
in economic growth, economic history, macroeconomics Tags: Eurosclerosis
Is the middle-class disappearing?
12 Feb 2015 Leave a comment
in economic growth, human capital, income redistribution, politics - USA, poverty and inequality Tags: middle class stagnation
When did global technological leadership migrate across the Atlantic?
10 Feb 2015 Leave a comment
in economic growth, human capital, politics - USA, technological progress Tags: global technological frontier, growth of knowledge, innovation, Schumpeter, technology diffusion
HT: theatlantic.com/a-short-history-of-american-invention/385279/ via Mikko Packalen and Jay Bhattacharya
GDP per New Zealander remains well below leading OECD economies due to a large shortfall in labour productivity
10 Feb 2015 Leave a comment
in economic growth, macroeconomics, politics - New Zealand
Everyone is richer in the USA and the middle class is moving up
09 Feb 2015 Leave a comment
in economic growth, great recession, macroeconomics, poverty and inequality Tags: The Great Enrichment
The middle class is shrinking in the USA because most of of 10% shrinkage is due to them becoming rich.
Everyone is wealthier than in the past and would have been wealthier but for the Great Recession and the countless tax rises of Obama.
A Report Card for Humanity: 1900-2050
06 Feb 2015 Leave a comment
in applied welfare economics, economic growth, health economics, technological progress Tags: The Great Enrichment, The Great Escape, The Great Fact
This map requires the tyranny of distance types to predict the coming boom for New Zealand
05 Feb 2015 Leave a comment
in economic growth, economic history, politics - New Zealand Tags: geography, global economic hubs
HT: https://twitter.com/tutor2u_econ/status/552013472247341056?s=09
Deflation and Depression: Is There an Empirical Link?
31 Jan 2015 Leave a comment
in budget deficits, business cycles, economic growth, Euro crisis, great depression, great recession, macroeconomics, monetary economics, politics - Australia, politics - New Zealand, politics - USA Tags: deflation, fiscal policy, liquidity traps, monetary policy, stabilisation policy
Deflation has a bad reputation. People blame deflation for causing the great depression in the 1930s. What worse reputation can you get as a self-respecting macroeconomic phenomena?
The inconvenient truth for this urban legend is empirical evidence of deflation leading to a depression is rather weak.
The most obvious is confounding evidence, is up until the great depression, deflation was commonplace. In the late 19th century, deflation coincided with strong growth, growth so strong that it was called the Industrial Revolution.
For deflation to be a depressing force, something must have happened in the lead up to the Great Depression to change the impact of deflation on economic growth.
Atkeson and Kehoe in the AER looked into the relationship between deflation and depressions and came up empty-handed.
Deflation and depression do seem to have been linked during the 1930s. But in the rest of the data for 17 countries and more than 100 years, there is virtually no evidence of such a link.
Deflation and Depression: Is There an Empirical Link?
Andrew Atkeson, and Patrick J. Kehoe, 2004.
Are deflation and depression empirically linked? No, concludes a broad historical study of inflation and real output growth rates. Deflation and depression do seem to have been linked during the 1930s. But in the rest of the data for 17 countries and more than 100 years, there is virtually no evidence of such a link.
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