Sunday, March 8, 2009

Macroeconomics Articles

The Obama mortgage plan targets lowering interest payments to stem foreclosures, instead of instead of principal. A Yale Econ Professor and a BU Law Professor think this is a bad idea (from Mankiw): http://www.nytimes.com/2009/03/05/opinion/05geanokoplos.html


An argument about the correct projected growth rate, starting from today. Basically, Mankiw vs DeLong, Krugman and the CEA/Romer/Summers/Obama. This blog strips down a bunch of the probability that Mankiw, DeLong and Krugman have on their blogs... unfortunately, Obama and his advisers aren't exactly blogging. It seems that Mankiw's technically correct (not a huge surprise - Krugman's never done macro and the CEA has to be political as well as economic which strips their analysis. Mankiw and DeLong are both pretty talented macro guys, but Mankiw noticed an outlier that DeLong didn't (Reagan's tax policies and the state of the world meant very fast growth after the 80s recessions, which sadly, Obama's stimulus and the international crisis doesn't help with)

http://justoneminute.typepad.com/main/2009/03/unit-roots.html

I recommend reading the source blogs as well.

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