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Odd Numbers

Dec 10 08 4:11pm EDT

Chart of the Day: Japan Under Quantitative Easing

Owen F. Humpage and Michael Shenk of the Cleveland Fed have a nice summary of what happened to Japan's economy under quantitative easing between 2001-06. Overall, they offer what I interpret as a mixed outlook for the prospects of quantitative ... Continue


Dec 09 08 4:13pm EDT

Don't Cry for Capitalism

Michael Dueker predicts that about another 5.4 million jobs (as per my eye-balled estimate of this chart) will be gone by the time the recession is over. (A figure pretty close to the one I got using historical averages.)Most anyone ... Continue


Dec 08 08 4:58pm EDT

Can We Remember the Pain of Bubbles Past?

In a recent EconTalk podcast, host Russ Roberts and Yale's Robert Shiller got into a good discussion over the origins of the subprime crisis, which Shiller largely attributes to bubble psychology. But Roberts offered an interesting test: Shiller: It's this ... Continue


Dec 05 08 6:04pm EDT

The Pain to Come

It's probably the last thing anyone wants to hear so soon after news of the 533,000 lost jobs suffered last month -- but if history is a guide, it's only going to get worse from here. That's because the majority ... Continue


Dec 04 08 3:34pm EDT

The Lending Standards Red Herring

I'd taken a hiatus from talking about the role -- or more precisely, lack of a role -- of lending standards in bringing down the economy, but a couple of developments today pull me back to it. In his speech ... Continue


Dec 01 08 4:38pm EDT

Should the Fed Go Long?

I missed this bit from Bernanke in my earlier post: Although conventional interest rate policy is constrained by the fact that nominal interest rates cannot fall below zero, the second arrow in the Federal Reserve's quiver--the provision of liquidity--remains ... Continue


Dec 01 08 2:58pm EDT

Bernanke's Speech

Some takeaways from the Fed Chairman's speech: 1) Tough talk on the need for banks to realize that the easy days are over: Ultimately, however, market participants themselves must address the fundamental sources of financial strains by raising new capital ... Continue


Nov 30 08 9:36am EDT

Even Nobel Economists Can Be Intellectually Dishonest

Paul Krugman argues on his blog that Milton Friedman and Anna Schwartz's Great Depression hypothesis has "taken a hit": A central theme of Keynes's General Theory was the impotence of monetary policy in depression-type conditions. But Milton Friedman and Anna ... Continue


Nov 28 08 1:24pm EDT

A 5-Point Plan for Getting Out of This

In assessing Japan's decade-long, stop-and-start effort to repair the damages caused by its stock and real estate bubbles, Morgan Stanley's Robert Alan Feldman comes up with a plan that can be mimicked by other countries. Let's see how the U.S ... Continue


Nov 26 08 11:25pm EDT

Do Markets Filter Irrationality?

It's tough to defend market rationality these days, but University of Chicago's John List is putting up a good fight. Just published in the The B.E. Journal of Economic Analysis & Policy: Assumptions of individual rationality and preference stability provide ... Continue


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