Understanding the Great Depression
24 May 2017 1 Comment
in business cycles, economic history, great depression, macroeconomics, monetarism, monetary economics
Milton Friedman – Congressional House Economic Task Force (1993)
15 Oct 2016 Leave a comment
in economic history, fiscal policy, great depression, history of economic thought, macroeconomics, Milton Friedman, monetarism, monetary economics Tags: fiscal stimulus
Share market losses during previous financial crises in the USA and UK
31 Jan 2016 Leave a comment
in business cycles, economic history, fisheries economics, global financial crisis (GFC), great depression, great recession, macroeconomics Tags: banking crises, financial crises, sovereign debt crises, sovereign defaults
The modern macroeconomics of the Global Financial Crisis
02 Dec 2015 Leave a comment
in applied price theory, budget deficits, business cycles, economic growth, economic history, economics of regulation, Euro crisis, fiscal policy, global financial crisis (GFC), great depression, great recession, macroeconomics, monetary economics Tags: adverse selection, bank panics, bank runs, banking crises, deposit insurance, economics central banks, financial crises, moral hazard, sovereign defaults
How frequent are simultaneous financial crises in one country?
04 Sep 2015 Leave a comment
in business cycles, currency unions, development economics, economic growth, economic history, Euro crisis, financial economics, global financial crisis (GFC), great depression, great recession, growth disasters, growth miracles, law and economics, macroeconomics, monetary economics, property rights Tags: bank runs, banking crises, banking panics, currency crises, current account crises, debt crises, pseudo financial crises, real financial crises, sovereign debt crises, sovereign default
ABCT insights are predominantly a theory of unsustainable credit-induced booms
09 Aug 2015 Leave a comment
in Austrian economics, business cycles, global financial crisis (GFC), great depression, great recession, macroeconomics, monetarism, monetary economics Tags: Austrian business cycle theory, Austrian macroeconomics, booms and busts, central banking, monetary policy, Roger Garrison
via What Austrian business cycle theory does and does not claim as true | Institute of Economic Affairs
Did fiscal austerity in 2010 have credible academic support?
05 Aug 2015 1 Comment
#Greece austerity gauge. Greek government spending has fallen 20% since 2008. In UK and Italy it's up. #GreekCrisis http://t.co/WMQBxxVFqq—
RBS Economics (@RBS_Economics) July 07, 2015
One measure of the scale of austerity in Greece…and other advanced economies. http://t.co/PxCLagdd3L—
RBS Economics (@RBS_Economics) July 06, 2015
The employment level in #Greece is back to where it was in 1985. It's the equivalent of the UK losing 6 million jobs. http://t.co/AAWHMEFwfK—
RBS Economics (@RBS_Economics) July 06, 2015
Did the GFC catch modern macroeconomists by surprise?
03 Aug 2015 Leave a comment
in budget deficits, business cycles, currency unions, economic growth, Euro crisis, fiscal policy, global financial crisis (GFC), great depression, great recession, history of economic thought, law and economics, macroeconomics, monetary economics Tags: bank panics, bank runs, banking crises, currency crises, Thomas Sargent
Mises and Hayek on the great depression
02 Aug 2015 Leave a comment
in business cycles, F.A. Hayek, great depression, Ludwig von Mises, macroeconomics Tags: Austrian business cycle theory, forecasting errors
Herbert Hoover and the onset of the Great Depression
23 Jul 2015 Leave a comment
in business cycles, economic history, economics of regulation, great depression, industrial organisation, labour economics, macroeconomics, unions Tags: Herbert Hoover, Lee Ohanian
Greek and US great depressions compared
14 Jul 2015 Leave a comment
in business cycles, currency unions, economic growth, economic history, Euro crisis, global financial crisis (GFC), great depression, great recession, job search and matching, labour economics, macroeconomics, unemployment Tags: Greece
https://twitter.com/ianbremmer/status/620570062538309632/photo/1
Greek Depression vs US Depression:
Unemployment http://t.co/81efYi5Ajy—
ian bremmer (@ianbremmer) July 13, 2015
How great was the Great Depression unemployment? The official and Darby estimates of US unemployment in the 1930s
17 Jun 2015 Leave a comment
in business cycles, economic history, great depression, labour economics, macroeconomics, unemployment Tags: Euro sclerosis, measurement error, Michael Darby
The graph below shows two different series for unemployment in the 1930s in the USA: the official BLS level by Lebergott; and a data series constructed famously by Michael Darby.
Figure 1: US unemployment rate, 1929 – 40: Darby and Lebergott estimates
Source: Robert Margot (1993).
Darby includes workers in the emergency government labour force as employed – the most important being the Civil Works Administration (CWA) and the Works Progress Administration (WPA). Once these workfare programs are accounted for, the level of U.S. unemployment fell from 22.9% in 1932 to 9.1% in 1937, a reduction of 13.8%.
For 1934-1941, the corrected unemployment levels are reduced by two to three-and-a half million people and the unemployment rates by 4 to 7 percentage points after 1933.
Not surprisingly, Darby titled his 1976 Journal of Political Economy article Three-and-a-Half Million U.S. Employees Have Been Mislaid: Or, an Explanation of Unemployment, 1934-1941. The corrected data by Darby shows stronger movement toward the natural unemployment rate after 1933.
From about 1935, the unemployment rate in the Great Depression in the USA is not much different from what it is in Europe in recent decades under Eurosclerosis.
In the 1930s in the USA, many unemployed were employed by the Civil Works Administration and the Works Progress administration. In contemporary Europe, the unemployed are simply paid not to work under their welfare state arrangements.
Growth accounting for the USA in the 1930s
05 Jun 2015 Leave a comment
in business cycles, economic growth, economic history, great depression, macroeconomics Tags: great depression, growth accounting, real business cycles
Notice how productivity recovers but hours worked per working age adults does not.
via The Current Financial Crisis in Spain: What Should We Learn from the ….
Utopia, you are standing in it! 
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