Tag Archives: larry summers

Legislative Gridlock isn’t the Problem

An interesting take from Larry Summers: The great mistake of the gridlock theorists is to suppose that progress comes from legislation, and that more legislation consistently represents more progress. While people think the nation is gripped by gridlock, consider what … Continue reading

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Larry Summers Reviews the History of Austerity

Summers reviews Austerity: the History of a Dangerous Idea by Mark Blyth here. Photo from Financial Times

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Reactions to Mankiw on the Long Run Budget Path

I agree with most of Greg Mankiw’s NYTimes piece on long-term debt to GDP but can’t overlook a glaring omission –  he seems to ignore the fact that we are currently experiencing a major economic catastrophe. Here’s how Mankiw concludes: Military … Continue reading

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An Economic To Do List From Larry Summers

Do more than focus on the deficit Avoid sequester and spread cuts overtime Address international aspects of corporate tax reform (see related posts here and here) Fix housing finance and loosen GSE lending restrictions modestly Accelerate the transformation of the … Continue reading

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Understanding Hysteresis

I presented these slides on Blanchard and Summers 1986 yesterday at the Berkeley Macro lunch. If you are interested in Hysteresis, this is one of the seminal papers in the literature. Overview  Periods of persistently high unemployment are not uncommon events in … Continue reading

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Historical Hysteresis: Adverse Shocks vs Structural Problems

I started posting last week on the Summers & Blanchard paper, which is on hysteresis and the Unemployment problem in Europe starting in the mid 1970s. Many advocated structural explanations for hysteresis, but Summers & Blanchard looked to the Great Depression period … Continue reading

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Hysteresis & the Unemployment Problem

Summers and Blanchard have a paper on Hysteresis in Europe in the 1980s in which they discuss three main potential causes of hysteresis, which is a very high dependence of current employment on past unemployment. The three causes are (1) physical … Continue reading

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Policy Implications of the Rise of Robots

After the forum that I posted about yesterday, there was a Q&A with Larry Summers. I asked him about the policy implications of living in a world of “Doers” and whether that should change how we think about pro-capital vs … Continue reading

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Larry Summers on Economic Possibilities for Our Children – Robots, Inequality, & Government Spending

I came across the lecture Larry Summers gave on the future of the next generation in which he talks about the rise of robots, inequality, government spending and many other interesting issues. Very much worth watching. Here’s a summary of some … Continue reading

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Raising Another Trillion in Revenues

Larry Summers argues it’s plausible that we can raise another $1 trillion+ over the next ten years – here’s how: The failure to tax capital gains at the point of death costs the federal government about $50bn a year. Since … Continue reading

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