Krugman Ignores Failed Keynesian Predictions

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    In his blog post yesterday, Paul Krugman claimed: “We have a pretty good model of aggregate demand, and of how monetary and fiscal policy affect that demand. … And it remains true that Keynesians have been hugely right on the effects of monetary and fiscal policy, while equilibrium macro types have been wrong [...]

June Employment Worse than it Appears


Mort Zuckerman’s claim in today’s Wall Street Journal—that an increase of 288,000 jobs in June is the result of a 523,000 drop in full-time employment offset by an 800,000 increase in part-time employment—motivated me to look more carefully at long-term employment trends since 2007. I feared opportunistic reporting of random one-month fluctuations might distort perceptions. [...]

Does Alan Krueger’s defense of the Obama Admin’s economic policies add up? You be the judge

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Last week, I debated Alan Krueger, President Obama’s former Chairman of the Council of Economic Advisors on Bloomberg TV’s In The Loop with Betty Liu. I made the argument that the administration pumped trillions of dollars of fiscal stimulus into the economy over the last six years, over-predicted the impact stimulus would have on growth, [...]

Ed Conard offers economic advice to President Obama on “Betty in the Loop” on Bloomberg TV

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Recommendations on how the president’s change his policies to jumpstart the economy.

Ed Conard debates Alan Krueger on Obama’s economic record and if he’s to blame for slow growth on Bloomberg TV

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Given the last five years of economic activity, is Obama the worst president since WWII?

June jobs report: Is the economy really recovering? Ed debates with Alan Krueger and Betty Liu on Bloomberg TV

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Ed Conard analyzes the recovery and explains why it’s not as strong as it could be.

What’s housing market’s impact on the economy? Ed discusses with Maria Bartiromo on Fox Business

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How home values and bank lending are affecting the economy now.

Ed Conard addresses the impact of high corporate tax policies on Maria Bartiromo’s show on Fox Business

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Ed Conard discusses how corporations are working around high U.S. corporate taxes with Vanguard Group CEO, Bill McNabb, and Maria Bartiromo

Summers and Krugman Justify Stimulus Using Mian and Sufi’s Hard-to-Believe Theory Subprime Savings Caused Great Recession


Larry Summer and Paul Krugman cite Atif Mian and Amir Sufi’s hard-to-believe theory of the Great Recession to justify fiscal stimulus. In their book, House of Debt, Mian and Sufi claim falling home prices caused highly levered subprime households to reduce consumption and temporarily save a larger portion of their earnings. A more likely scenario [...]

Rescuing Subprime Borrowers Won’t Fix the Economy

Fortune Square

    Fortune Magazine By Edward Conard | June 11, 2014 In their new book, House of Debt, Atif Mian and Amir Sufi make a persuasive argument that a decline in consumption caused by a drop in home prices slowed the economic recovery more than a weakened banking system. Even if banks were strong, they [...]

Piketty Overlooks the Circumstantial Nature of Economics


Despite the implausible economic theory underlying Capital in the Twenty-First Century (as addressed here, here, here, and here), Thomas Piketty nevertheless makes a valuable contribution by questioning Simon Kuznets’ theory that income becomes more equally distributed as economies grow more prosperous. Instead, growing income equality (and inequality) appears to be highly circumstantial. When the U.S. [...]

Economists Krusell & Smith find “Piketty’s second law…misleading, and…not fundamental”


Alex Tabarrok reports on a recent paper by Per Krusell and Tony Smith that articulates the problem with Thomas Piketty’s so-called “Second Law of Capitalism” a problem that Larry Summers claims stems from Piketty “misreading the literature by conflating gross and net returns to capital.” Krusell and Smith conclude: “We find Piketty’s second law quite [...]