December 27th, 2016
-- this post authored by Enrico Perotti
Per-capita income in developed countries has stagnated, which most economists regard as a departure from the long-run trend. This column argues that zero long-term growth will be the new normal. In this zero-growth world, spending increases must always be balanced against spending reductions elsewhere or in the future, which creates a further problem: no politician could implement policy changes with such bleak outcomes.
Written by Steven Hansen
This past week, the electoral college confirmed Donald Trump was going to be the next USA President. He did not win the majority of popular votes cast - but won the majority of electors in the system designed by the founding fathers which was intended to prevent the more populous states from dominating the election process. Much of our economic policies seemed geared towards higher population areas, and falling short in rural America.
by Philip Pilkington
I was going to run a blog on Hans Albert’s critique of the quantity theory of money but it appears that Lord Keynes has gotten there ahead of me. I just wanted to pull out one point in this short note that he raised, as it proved to be one of the most difficult I encountered when trying to formulate a general theory of pricing.
-- this post authored by Sandra Black, Jason Furman, Laura Giuliano, and Wilson Powell
Over the past three years, 18 states plus the District of Columbia have implemented minimum wage increases, joining ten other states that have raised their minimum wages at least once since the last Federal increase in 2009. This column examines the impact of the more recent state increases on wages, weekly earnings, and employment among workers in the low-wage leisure and hospitality Industry. A comparison with states with no minimum wage increase since 2009 suggests that the recent legislation contributed to substantial wage increases with no discernible impact on employment levels or hours worked.