Delete fiscal policy from macro
[ad_1] In 1968, Congress enacted a major tax increase to control inflation, eliminating the budget deficit. It didn’t work. Monetary policy became more expansionary and inflation increased still further. This was a major failure of the Keynesian model, and it helped lead to a revival of monetarism. In 1981, taxes were cut and military spending […]
Macro Snapshot / St. Louis Fed
[ad_1] Very useful dashboard via the St. Louis Fed, which maintains the fabulous FRED database. With a clean and simple interface, it puts all of the key economic indicators the FOMC tracks — Real GDP Growth, Unemployment Rate, PCE Inflation, Core PCE Inflation, and the Federal Funds Rate — in one convenient location. The Macro […]
(Almost) nobody gets macro
[ad_1] Finding mistakes in the media is like shooting ducks in a barrel. But I hope today’s post will do more than take a few potshots, I am going to try to illustrate some fundamental problems with macroeconomics. The Economist has an interesting article discussing the inflation that hit Europe in the period around 1500-165o. […]