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Guest Contribution: “The Historical Puzzle of US Economic Performance under Democrats vs. Republicans”

Today, we present a guest post written by Jeffrey Frankel, Harpel Professor at Harvard’s Kennedy School of Government, and formerly a member of the White House Council of Economic Advisers. A shorter version appeared at Project Syndicate.  I thank Sohaib Nasim for research assistance and Emil Kaneti for catching a mistake in an earlier draft.


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Things that Are Unseen

In economics. Reader JohnH disparages attempts to measure r* (and r* plus expected inflation):

Question is, would anyone recognize the neutral rate if it stared them right in the face? And if it could be identified, would it be wearing its real face, a nominal one, or a “natural” one?

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