Should-Read: Robert Waldmann: A Dynamic Macroeconomic Model with Downward Nominal Rigidity II: "This note explores the implications of downward nominal rigidity...
Must-Read: Nick Rowe continues his long twilight struggle to try to explain what is really going on in the New Keynesian DSGE model to the world. I think this is a Sisyphean task:
Nick Rowe: Cheshire Cats and New Keynesian Central Banks:
How can money disappear from a New Keynesian model, but the Central Bank still set a nominal rate of interest and create a recession by setting it too high?...
This has been available in full exclusively at the magnificent and well worth subscribing-to Talking Points Memo.
SEND TPM MONEY!!!!
But now let me let it out into the wild here--and promise to imminently (well, maybe in a month...) write about the whole symposium of which it is a part:
The Melting Away of North Atlantic Social Democracy: Hotshot French economist Thomas Piketty, of the Paris School of Economics, looked at the major democracies with North Atlantic coastlines over the past couple of centuries. He saw five striking facts:
Over at Project Syndicate: Piketty vs. Piketty: BERKELEY – In Capital in the Twenty-First Century, the French economist Thomas Piketty highlights the striking contrasts in North America and Europe between the Gilded Age that preceded World War I and the decades following World War II. In the first period, economic growth was sluggish, wealth was predominantly inherited, the rich dominated politics, and economic (as well as race and gender) inequality was extreme... READ MOAR over at Project Syndicate