Why Did the US Labor Share of Income Fall So Quickly?
The share of US national income going to labor was sagging through the second half of the century, but then plunged starting around 2000. The McKinsey Global Institute takes "A new…
An old result on automation and wages
The first issue of AER Insights is out and the very first article is one by Francesco Caselli and Alan Manning on “Robot Arithmetic: New Technologies and Wages.” Here is the abstract: Existing…
Is the U.S. budget deficit sustainable?
The U.S. federal budget deficit for 2018 came in just shy of $800 billion, or about 4% of the gross domestic product (the primary deficit, which excludes the interest expense…
The costs and benefits of performance fees in mutual funds
Performance fee-based contracts, which aim to align the interests of the fund manager with that of the investor, have been controversial in mutual funds markets, and are once again under…
Why Call it “Socialism”?
I've been coming around to the belief that most modern arguments over "socialism" are a waste of time, because the content of the term has become so nebulous. When you…
What is “average inflation targeting”?
he Federal Reserve is charged by Congress with maintaining price stability and maximum sustainable employment. The Fed defines “price stability” as inflation at 2 percent. In its last annual statement on…
Monetary Policy and Financial Stability
As you well know, monetary policy has powerful effects on financial markets, the financial system, and the broader economy. Conversely, financial instability, by impairing the provision of credit and other…
Sustaining Maximum Employment and Price Stability
In July, the current U.S. economic expansion will become the longest on record—or at least the record since the 1850s, which is as far back as the National Bureau of…
Protecting the Independence and Integrity of Research: Introducing the Academic Capture Warning System
Inappropriate financial donor influence at institutions of higher education appears to be on the rise and risks eroding public trust in academic research. In order to defend academic freedom and…
Trade Wars Heat Up With New Assault on Mexico
One way or another, President Trump is going to drag the Fed into his trade wars. Tonight Trump announced via Twitter that imports from Mexico would face a 5% beginning June…
