What’s the Harm in Raising the Inflation Target?
Economist Jason Furman recently called for the Federal Reserve to raise its inflation target from 2 to 3 percent. In defending his position, Furman argued that while unexpected inflation results in redistribution that harms creditors and workers, expected inflation does not because workers and creditors will incorporate the higher expected inflation rate into their wage […]
Einav’s and Finkelstein’s Bizarre View of Libertarians
In their book We’ve Got You Covered, which I reviewed here, Liran Einav and Amy Finkelstein have a short section in which they discuss a 1975 article by James Buchanan titled “The Samaritan’s Dilemma.” They summarize it briefly. It has been almost 50 years since I’ve read Buchanan’s piece but I think they get it […]
Monetary Policy Remains Sufficiently Tight
Slowly but persistently, inflation is falling. The Bureau of Labor Statistics announced the Personal Consumption Expenditures Price Index (PCEPI) increased 0.2 percent in July. Over the past year, prices are up 3.3 percent overall and 4.2 percent excluding food and energy. The backwards-looking figures, however, don’t give us the best picture of where the economy […]
Naked Capitalism Fundraiser 2023: Finding New Footholds as the Fissures Widen
Our 2023 fundraiser starts today. If you know you will give, please go straight to the Tip Jar, to find out how to support us via check, debit or credit card. Get the fundraiser off to a fast start! Every contribution helps us be bigger and badder in 2024! We depend on reader support. We […]
What Is Increased Added Value?
Increase added value is a ability of the company to supply consumers with something more than a standard product or service. Increasing the value will increase customer satisfaction, company recognition and reputation, and can lead to a better bottom line and greater sales success. For example , air carriers used to compete by offering low […]
