I want to write about non-economic things and I've been itching for a rebrand so I've tenuously moved to Macrocracked at http://melaniefriedrichs.blogspot.com/.
|This probably violates Mankiew's copyright, but you can see his explanation on slides 14-34 of this powerpoint.|
|Again violating Mankiew's copyright, check out slides 35-69.|
|Krugs creative manipulation is actually pretty useful, although still weird|
|Units of Account is more accurate and more internationally inclusive than dollars.|
|Simple. Straight. Uncooked Spaghetti.|
3 More things about I like about The Spaghetti Model:
|I stole this image from a momblogger|
|Hayek says no|
|Better, but still feeling a little woozy|
|Yup this graphic was still made in powerpoint.Also the base is a little wonky because I was originally thinking its roots were in like 1600|
|Painting by Roy Litchtenstein. #GCB|
|Wouldn't you prefer to have a drink? Credits: Paul Kernfeld, Adrian Pio, Max Monn|
|Wise, isn't she?|
"If it looks like I’m going to win, the markets will be happy. If it looks like the president’s going to win, the markets should not be terribly happy. It depends of course which markets you’re talking about, which types of commodities and so forth, but my own view is that if we win on November 6th, there will be a great deal of optimism about the future of this country. We’ll see capital come back and we’ll see —without actually doing anything — we’ll actually get a boost in the economy."Krugman seized the opportunity to call him the confidence fairy, and thus simultaneously aligned my darling sprite with the side of evil, and denied her status as a real player in economic growth. My heart sank.
|A Cartoon criticizing government spending, Chicago Tribune, 1934|
|All custom images in this post were created in powerpoint. I have neither the patience nor the budget for photoshop.|
|These charts clearly show how the economy behaves in a liquidity trap. Yeah, they're pretty painful.|
Some readers have asked whether there isn’t an inconsistency between my view that the Fed can promote economic recovery by changing expectations about future policy, and my ridicule of austerity proponents who invoke “confidence” as a reason to believe that austerity will actually be expansionary. But there isn’t really any inconsistency; it’s an orders of magnitude thing. What the expansionary austerity types are claiming is that the indirect effect of austerity on confidence will outweigh the large direct depressing effect of cutting government spending now.He goes on to explain why, right now, the positive effects of government spending and inflation on expectations/confidence outweigh the negative effects of government spending and inflation. I won't go into that now. Suffice to say that the current economic debate is not about the importance of confidence, it's about the effect of policy on confidence.
|Sometimes you miss what's right under your nose.|
If we shadows have offended,
Think but this, and all is mended,
That you have but slumber'd here
While these visions did appear.
And this weak and idle theme,
No more yielding but a dream,
Gentles, do not reprehend:
if you pardon, we will mend:
And, as I am an honest Puck,
If we have unearned luck
Now to 'scape the serpent's tongue,
We will make amends ere long;
Else the Puck a liar call;
So, good night unto you all.
Give me your hands, if we be friends,
And Robin shall restore amends.