Paul Krugman notes Governor Walker’s advisers on economics at a recent meeting are Larry Kudlow, Stephen Moore and Arthur Laffer. These folks make appearances in the Econbrowser archives.
All the Governor’s Men (Economists)
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Author Archives: Menzie Chinn
Governor Walker Proposes to Restructure Debt Thereby Increasing Total Taxpayer Cost
As the state’s fiscal position becomes more dire, in large part due to the tax cuts implemented last year, Governor Walker proposes to delay some debt payments.
The Economic Report of the President, 2015
The entire report was released today, covering the “…progress of the recovery and explores the long-term factors that drive middle-class incomes,…the macroeconomic performance of the U.S. economy during 2014, …the opportunities and challenges facing the U.S. labor market, …how American family lives have changed over the last half-century and the implications of these changes for our labor market, …productivity growth with an examination of business tax reform, ..the profound transformation of the U.S. energy sector” and “…the United States in the context of the global economy.”
CEA Chair Jason Furman, CEA Members Maurice Obstfeld, and Betsey Stevenson summarize the report’s findings here.
Guest Contribution: Long-Term Effects of the Great Recession
Today, we’re fortunate to have David Papell and Ruxandra Prodan, Professor of Economics and Clinical Assistant Professor of Economics, respectively, at the University of Houston, as Guest Contributors.
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Responding to the Proposed Cuts to Wisconsin Higher Education
Assuming there are no other “drafting errors” in the Governor’s proposed budget for higher education, then the plan, if implemented, for a $300 million reduction in funding for the UW system, combined with a two year tuition freeze, has the following implications for the Madison campus of the University of Wisconsin.
“Uncovered Interest Parity and Monetary Policy Near and Far from the Zero Lower Bound”
Why do interest rate differentials point in the wrong direction for subsequent exchange rate changes at short horizons, and not at long? And why have interest differentials at long maturities failed in recent years to predict subsequent exchange rate changes as well as in the past, especially for interest rates near the zero lower bound. Those are two topics taken up in a recent paper by myself and Yi Zhang (University of Wisconsin).
The Low-Pay Recovery, Re-Assessed
From the Senate Republican Policy Committee Chair, John Barrasso, commenting on the December employment report:
The December jobs report, while posting 252,000 new jobs, reveals it’s still too soon to be bullish on an economic recovery. Wage data and labor force participation remain concerning.
Stagnant wage growth remains a weight on America’s economic recovery. In December, average hourly earnings for all employees on private nonfarm payrolls fell by five cents, to $24.57.
Politically Directed Higher Education
From the NY Times today:
… They are out there, hiding in library stacks, whispering in lecture halls, armed with dangerous textbooks and subversive pop quizzes…
Estimated Potential GDP — What Would Milton Friedman Say?
The CBO has revised downward the estimate of potential GDP, implying a relatively small output gap. I wonder about the downward revision (although I have the highest regard for the estimates CBO has generated.)
January 2015 Employment Release: +257K
This is in excess of the consensus of 230K [0] From BLS:
Total nonfarm payroll employment rose by 257,000 in January, and the unemployment rate was little changed at 5.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in retail trade, construction, health care, financial activities, and manufacturing.