In recent weeks the Job Guarantee proposal has gained supporters, and the arguments for an increased government role in ensuring full employment have become stronger. (See here, here, and here.)
Tag Archives: investment
Malinvestment and Endogenous Money
So much has been written about the endogeneity of money that I thought it was now widely accepted. But recent exchanges have shown me that people STILL aren’t getting it. Most recently, there have been two themes doing the rounds that bother me:
The IMF on Overinvestment
by Michael Pettis The IMF’s II Houng Lee, Murtaza Syed, and Liu Xueyan have published a very interesting and widely noticed study called “Is China Over-Investing and Does it Matter?” In it they argue that there is strong evidence that China is overinvesting significantly. According to the abstract: Now close to 50 percent of GDP, …
Cliffs, Nightmares, and Hidden Consumer Taxes
Written by Steven Hansen While watching Chairman Bernanke weave and bob in front of Congress this past week, I started to ponder what he said: The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 …
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Interest Rates, Consumption and Savings Rates
Over the past 10 years Chinese consumption has declined, investment increased and real interest rates have declined. And interest rate increases have pushed inflation inflation higher.